Creating shared value as a differentiation strategy – the example of BASF in Brazil

Abstract

Purpose-This paper aims to create empirical evidence regarding shared value strategies recently propagated by Michael Porter and Mark Kramer. Design/methodology/approach-The authors analyze a single case study of a collaboration between BASF, André Maggi Group and Fundaçã o Espaç o Eco in Brazil. The objective is to evaluate whether the applied strategy can be considered as a case of shared value creation. Findings-The case study on the collaboration between BASF, FEE and the André Maggi Group does qualify as a shared value strategy, more precisely as a case of redesigning productivity in the value chain. Research limitations/applications-This single case study creates some evidence for shared value strategies; however, more research is needed to generalize the results. Practical implications-The socio-eco-efficiency analysis offered by Fundaçã o Espaç o Eco creates a differentiation strategy for BASF in Brazil. The work enables BASF's clients to reduce negative impacts while increasing their financial, social and environmental performance. Originality/value-This paper is the first empirical verification of the shared value concept. It demonstrates that shared value strategies do enhance financial as well as socio-environmental performance and build stronger client relationships.

Hatékony helyi gazdaságfejlesztés a Biblia alapján és napjainkban

“…A beszál-lítók vagy a lánc más tagjainak támogatása első ránézésre költségtöbbletet jelent a vállalatok számára, azonban a teljes termelési és szolgáltatási folyamat produktivitását növeli, ami végeredményben a lánc egyes tagjainak hasznát is emeli (Spitzeck-Chapman, 2012). A második megoldás már-már klasszikusnak nevezhető példája a Nestlé (2006) esettanulmánya, amely Porter és Kramer teóriáját is megtermékenyítette.…”

Impacts of Socially Responsible Corporate Activities on Korean Consumers’ Corporate Evaluations in the Agrifood Industry

“…Prior research on CSV has focused on extending CSV-related theory [61,62] or on developing business strategy in specific societal fields [56,63]; in other words, these studies have focused more on the internal perspective of the firm. As companies initiate prosocial activities based on their assumptions of consumers' rewards for their support [12], this study contributes to the extant knowledge by examining CSV from an external perspective.…”

Measuring CSV Performance: An Explorative Study on Strategic Activities in Converged Home Appliance Industry

“…Spitzeck and Chapman (2012) suggested an empirical verification study of shared value based on Porter and Kramer's concept [14]. The research analyzed the Brazilian company BASF, the leading global chemical company and agricultural products business.…”

“…The first strategy level focuses on finding business targets from unmet societal needs as a new market opportunity for driving incremental revenue and profits [5,14]. The first level of strategic activities can be categorized as follows: 1) to redesign product by needs, 2) supply product properly, and 3) improve supply mechanisms.…”