Shared Value describes a business concept in which economic success and social benefits are achieved simultaneously. In doing so, companies develop products, services or business models that address social or environmental challenges whilst at the same time strengthening their own competitiveness.
At the heart of this is the idea that social problems are not merely costs or obligations. They can also serve as a starting point for innovation, new markets and sustainable growth.
Shared value can be created in various ways:
| Approach | Meaning |
| Rethinking products and markets | Companies develop products and services that meet specific social or environmental needs. |
| Improving value chains | Processes are designed in such a way that they become more cost-effective whilst also being more resource-efficient or socially responsible. |
| Strengthening local structures | Companies support networks, skilled workers, suppliers and infrastructure in their region. |
Typical examples of shared value include:
- digital solutions that improve access to education or healthcare services
- Products that save energy or resources
- Business models for customer groups that have received little attention to date
- Training programmes that equip employees with new skills whilst meeting the company’s need for skilled staff
- Partnerships with regional suppliers
- Technologies that help businesses reduce emissions or waste
Shared Value can help companies and start-ups to:
- to tap into new market opportunities
- to develop innovative products and business models
- to set itself apart from its competitors
- to build long-term relationships with customers and partners
- Using resources more efficiently
- to make the organisation more attractive to staff and investors
Shared Value should not be equated with donations or traditional charity. The social benefit is directly linked to the company’s core business and its commercial success.
| Shared Value | Standard donation |
| Part of the business model | support separate from the core business |
| economic and social benefits | above all, social benefits |
| integrated into processes and services in the long term | often a one-off or temporary measure |
| can boost turnover, efficiency or competitiveness | does not usually lead directly to financial returns |
Shared Value can also be distinguished from corporate social responsibility, or CSR for short. CSR encompasses a company’s social responsibility as a whole. Shared Value focuses more on directly linking social or environmental challenges with economic opportunities.
For shared value to be credible, its impact should be tangible and verifiable. To this end, companies can, for example, consider the following key performance indicators:
- energy or resources saved
- emissions avoided
- customers or users reached
- jobs or training places created
- improved working conditions
- Turnover from sustainable products
- economic benefits for participating partners
A common mistake is to label individual marketing initiatives as ‘shared value’. What is crucial is that social benefits and economic added value are actually embedded in the business model, the product or the value creation process.
For start-ups in particular, shared value can be an opportunity to use societal challenges as a starting point for innovative and scalable solutions. innoWerft supports founders in identifying relevant problems, developing business models that deliver both economic and social impact, and engaging suitable corporate partners, experts and investors from its network.