Michael Porter explains the difference between shared value and CSR

CSR is about being responsible. It implies that companies must be good corporate citizens. This is undoubtedly important and correct. It is about doing no harm. CSR is about redistribution of value. Sometimes, that may be the only solution possible. But the motivation is separate from the core of the business.

Shared value means a bigger opportunity. It is rethinking how we practise capitalism. It is not about reducing harm but increasing shared value. Redistribution can only succeed up to a point. Why not engineer the business model? The magic of capitalism will come into play. Companies can redesign their products and value chains to create value. Companies can be socially responsible and make more money. This is a more sustainable solution to societal problems.