Shared value through clusters
Summary of the European Alliance Against Coronavirus Daily Webinar on 9 July 2020.
What does the concept of shared value mean and how can clusters help companies to implement it? These were the main questions discussed during this session with Alberto Pezzi from ACCIÓ and Xavier Amores from Catalan Water Partnership.
Shared value is “policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates” (M.E. Porter and M. Kramer in 2011). We can find three possible ways to create shared value:
- Conceiving new products and market means providing products and service to disadvantaged communities in order to better aligned products and service with societal needs
- Redefining productivity in the value chain across new business models that take into account specific societal needs and try to be more focused on an efficient use of scarce natural resources
- Building supportive industry clusters at the company’s location with the goal of improving local business environment
Clusters are the ecosystems where companies can create a shared value that strengthens business identities, implements a sense of network membership, and increases their competitiveness. It is precisely within the clusters that companies can intercept the needs of society and satisfy them by developing new products and services, created and delivered thanks to process innovation. This is shown by the examples from the Catalan Water Partnership.
Nowadays, one of the most important challenges facing society is climate change: how can clusters help the society meet this challenge? Firstly, by fostering cooperation between different stakeholders. Secondly, clusters can develop guidelines and long-term strategies for companies to achieving sustainability goals.
During his speech, Alberto Pezzi used a concrete example to highlight the need for policy involvement. As the concept includes the policy level, policymakers should be included to promote collaboration and boost a shared value culture through frameworks, incentives, trainings, and projects.
A recording of the session is available here.
These are the complete minutes of the meeting:
Photo by Shared value (Pezzi)