The Banking Royal Commission and subsequent release of yesterday’s report have created the perfect storm for positive change within corporate Australia. Whilst not diminishing the misconduct that has occurred, it provides an opportunity for companies to pause and reassess their priorities and consider more deeply their purpose with regard to customers and society more broadly.
We believe that shared value as described by Porter and Kramer in the original Creating Shared Value 2011 HBR article is part of the solution to restoring faith in business. Shared value offers organisations the opportunity to put customers back at the core of their strategy and to respond to the increasing expectation for business to address social issues.
We have witnessed in the last five years through the work of our members particularly those in the financial services sector, including NAB, a genuine desire and determination to change the way their businesses have traditionally operated. Whilst we recognise the need for immediate action, shared value provides a framework for a long term sustainable solution and we will continue to support these companies in taking the longer view.
Larry Fink’s annual letter to CEOs is BlackRock’s most significant to date and continues to challenge business to strengthen the link between profit and purpose, supporting the recommendations of the Banking Royal Commission and the idea of shared value, which focuses companies on the right kind of profits – profits that 'create societal benefits rather than diminish them.'
2019 marks a significant milestone for the Shared Value Project, our fifth anniversary year and against this landscape never has the need for shared value and the opportunities it can generate been more apparent.
Chief Executive Officer
Have a question about #sharedvalue? Tweet us @SharedValueAust