From Strategy to Measurement: Shared and Social Value in Stakeholder Capitalism
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9-18David: We're so used to judging a company's success by one thing: its profit. But lately, there's a growing sense that profit alone just isn't the full story.
Mia: Exactly. It’s a crucial shift. We're moving from a singular focus on financial returns to a broader understanding of a company's real impact and its responsibilities to society as a whole.
David: And today, we're diving into two influential business frameworks that are really shaping this conversation: Porter and Kramer's shared value and Retolaza and Alzola's social value. Both challenge that old idea of shareholder primacy.
Mia: Right, they both agree that profit isn't everything, but they come at the solution from fascinatingly different angles.
David: Let's start with Porter and Kramer. They're strategists, so they're asking, How can companies innovate to align their profits with doing social good? They offer what they call a managerial roadmap that focuses on things like product design, supply chains, and industry clusters.
Mia: It’s really about finding that sweet spot where a company's core business activities can directly address societal needs. The idea is that solving a social problem shouldn't be seen as a cost, but as a massive opportunity for growth and competitive advantage. It's a win-win.
David: Okay, that's the strategic how. Then we have Retolaza and Alzola, who come at it from a background in philosophy and accounting. Their key question is totally different: How do we actually measure if companies are creating value for society?
Mia: And this is the game-changer. They argue that any claim a company makes about being responsible is basically hot air if it's not backed by measurement. Their contribution is to say, Show us the numbers.
David: That makes so much sense. It's the difference between a marketing campaign and actual accountability.
Mia: Precisely. Because if you can't measure it, you can't really manage it, and more importantly, you can't prove it. This moves corporate social responsibility from a feel-good brochure to a demonstrable performance metric.
David: So it seems like these two frameworks aren't competing at all; they're actually highly complementary. Shared value gives you the strategic vision, and social value provides the ruler to measure your progress.
Mia: That's the perfect synergy. Together, they make this big, fuzzy idea of stakeholder capitalism much more concrete. Instead of just talking about their aspirations, companies can be judged on measurable performance.
David: And that measurable performance is the key, isn't it? It’s the difference between a company saying it cares about the environment and a company demonstrating a quantifiable reduction in its carbon footprint. It moves us beyond potential greenwashing to genuine accountability.
Mia: Exactly. So, to wrap it all up, what we're really seeing is a powerful combination. On one hand, you have the shared value framework, which gives businesses a strategic roadmap for turning social problems into profitable ventures. It's the how-to.
David: And on the other hand?
Mia: You have the social value framework, which brings the discipline. It insists that you can't just talk about doing good; you have to measure it and be held accountable. It provides the proof. When you combine that strategic vision with rigorous measurement, you finally have a concrete, believable path for businesses to create real value for everyone, not just shareholders.