Creating Shared Value Criticism (CSV)
In bourgeois terms, ‘Creating Shared Value’ means “bringing business and society back together”, and recognizing their interdependence.
In reality: CSV admits the failure of CSR, is an empty concept, and ultimately is another attempt to appease the critics of business.
The Failure of Corporate Social Responsibility (CSR)
After years of trying to appease critics by being ‘socially responsible’, companies have realized the CSR marketing ploy doesn’t work. Critics have not been pacified, but given new ammunition: the hypocrisy and insincerity of corporations. However the business bourgeois have quickly found a new avenue of appeasement: CSV.
Michael Porter, one of its main proponents, cites the failure of CSR: “the more business has begun to embrace corporate responsibility, the more it has been blamed for society’s failures.”
Porter points out “the capitalist system is under siege”.
CSV to the rescue; “the solution lies in the principle of shared value”.
The Empty Concept of “Shared Value”
Porter says that companies should “create shared value” by “creating economic value in a way that also creates value for society”. This is the most pointless, valueless statement in recent times. It adds nothing to economic or business theory, only restating it with a nice acronym.
All economic transactions create value for society. Customers wouldn’t purchase products unless they shared value. Workers wouldn’t work for a company unless they shared value. Suppliers wouldn’t supply unless they shared value. Customer-Business-Worker transactions would not take place unless both parties shared some value. This point cannot be overstated and is one of the most basic concepts in economics. Economic exchanges take place because both parties are better off after the trade, each receiving value.
Businesses have always been interdependent with society and have always created value. In addition to the taxes paid.
Creating Shared Value is nothing more than a cute way of saying companies should do what they already do.
CSV: The New Appeasement Strategy
And that is the point of CSV, it is designed to make businesses look nice and sound good. The typical bourgeois mentality, concerned with appearing and pretending to be liberal. CSV replaces CSR as the new form of appeasement to the critics of capitalism.
Here is the link to Michael Porter’s article on CSV: