Taxonomy of CSR, social enterprise and CSV in Korea: A theoretical study of CSV and its implications

Abstract

Creating Shared Value (CSV) is a new way of integrating economic and social value creation activities, intro-duced by Porter and Kramer in 2011. There are three different levels, or approaches, in implementing CSV, which are reconceiving products and markets, redefining productivity in the value chain and enabling the local cluster. Companies will be able to achieve a significant value creation throughout practicing and implementing CSV with one or more approaches in their business operations. Further, CSV can be cross-examined with previous social initiatives, such as CSR and Social Enterprise. Despite being a new way of integrating social issues, CSV does not deny the importance of CSR and Social Enterprise to resolve social issues. Rather, it is suggested that CSV can take a different path from those previous initiatives, and thus companies can implement each social initiative accordingly. For the success of CSV, it is important to understand the characteristics and implications of CSV and other social initiatives. Most important of all, CSV needs to be carried out from the company’s top management with a strong commitment.