Which of the following creates shared value?

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Question: Which of the following creates shared value?

Option a: Starting companywide CSR initiatives. This can build social impact, but shared value emphasizes integrating social impact with economic value creation rather than treating CSR as separate initiatives. It tends to be broader than a single program and is not inherently tied to simultaneously increasing economic value through social value creation.

Option b: Reconceiving products and markets. This can indeed generate shared value if the reconceived products or markets meet social needs while also increasing economic returns. It reflects the core idea that business opportunities can align with societal benefits. However, on its own, this statement doesn’t fully capture the explicit mechanism of shared value unless it explicitly links social value to economic value.

Option c: Disabling local cluster development. This action would typically harm both social well-being and economic potential, thereby failing to create shared value. It is antithetical to the concept, which relies on leveraging social improvements to drive business success.

Option d: Creating social value by creating economic value. This phrasing reverses the common sequence. Shared value is described as creating economic value in a way that also creates social value; the causal direction is from social value to business value, not the other way around in this wording. The emphasis is on economic value being produced through addressing social needs, not on generating social value as a byproduct of economic value.

Option e: Creating economic value by creating social value. This matches the standard definition of shared value: firms pursue strategies that unlock economic value as a result of addressing social needs or enhancing social welfare. The logic is that social improvements open new markets, reduce costs, or mitigate risks, thereby producing profit.

In summary, option a describes CSR-like activity which is not necessarily integrated with economic value creation; option b offers a potentially viable route but lacks the explicit definition; option c clearly undermines shared value; option d reverses the typical causal direction; option e accurately captures the shared-value premise that economic value is created by delivering social value. The reasoning aligns with the accepted definition of shared value where economic value is generated through strategies that create social value.

Which of the following creates shared value?

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