The potential of shared value creation: a theoretical analysis

The urgent issues economy, environment and society are facing need new approaches which allow a well-balanced sharing of value created by the economy. A step forward is the concept of shared value creation. This paper aims to analyze the main features, the content of strategy of shared value creation and to propose the social innovation as main strategic way of shared value creation. At the beginning, the drivers and challenges of shared value creation are investigated in a systematized manner, in order to better understand why this new way of doing business is needed. Then, the concept and the three levels of shared value creation are investigated as sources of economic, environmental and social benefits that a business creates. These benefits depend on how efficient and diligent the company works. We are advancing the social innovation as main strategy having the greatest potential to create value with economic, environmental and social benefits. Finally, a framework for measurement of shared value creation is included. This framework is aiming at giving a tool for checking up the potential the shared value creation has for solving environmental and social issues.