An Extension of Porter and Kramer's Creating Shared Value (CSV): Reorienting Strategies and Seeking International Cooperation

This paper improves the theory of creating shared value (CSV), a new way to achieve economic success, which was introduced by Porter and Kramer. First, this study provides four types of corporations (Stupid Corporation, Selfish Corporation, Good Corporation, and Smart Corporation) categorized in terms of corporate and social benefits, and shows that the final destination for corporations is to be smart, meaning the ethics and strategy as the firm' s basic measures to bolster value creation. Second, this paper provides four distinctive strategies in order to effectively create shared value, an extended version of three strategies presented by Porter and Kramer: defining core competence; reconceiving comprehensive targets; redefining productivity in the value chain; and enabling local or global cluster development. "Defining core competence" is newly added and "reconceiving comprehensive targets "is extended from Porter and Kramer's notion of "reconceiving products and markets. "Above all, this paper highlights the importance of internationalization of CSV, unlike Porter and Kramer's emphasis on domestic clusters. The paper demonstrates the usefulness of these improvements in explaining CSV activities in the real world.