On June 14, the Melbourne Development Circle explored Shared Value Partnerships. Whilst there are positive examples that can be drawn upon to learn 'what works' in these partnerships, questions still remain about their long-term effectiveness when compared to more traditional modes of development. This presentation is from one of the speakers, Jess Pattison from the Shared Value Project.

1. TRENDS IN DEVELOPMENT
Shared Value and Public-Private Partnerships
in Development
- Jess Pattison | Shared Value Project
- Janosh Biczok |Centre for Humanitarian Leadership
- James Goodman | AidWatch
@TheDevCircle #SharedValue
@sharedvalueaust @centrehl @AID_WATCH

2. 2 sharedvalue.org
Shared Value Recap
Shared value is not social responsibility,
philanthropy, or sustainability, but a new way
to achieve economic success
Michael E. Porter and Mark R. Kramer, “Creating Shared Value,” Harvard Business Review, January-February 2011

3. 3 sharedvalue.org
Harvard Business Review,
December 2002
Winner of the 2006
McKinsey Award
Winner of the 2011
McKinsey Award
Corporate
Philanthropy
Corporate
Social
Responsibility
Shared Value Recap
Evolution of Thinking
+ Select FSG Publications
• Measuring Shared Value
• Creating Shared Value: A How To Guide
• Competing by Saving Lives
• Shared Value in Education
• Banking on Shared Value
• Extracting with Purpose
• Shared Value in Chile
• Shared Value in Emerging Markets
• Creating Shared Value in India
Creating
Shared Value
Harvard Business Review,
January 2012

4. 4 sharedvalue.org
Shared Value Recap
Linkage Between Societal and Corporate Success
Long-term
competitiveness
of companies
Essential role of
business in
solving social
problems
Past efforts have emphasized the friction between business and society,
instead of the synergy

5. 5 sharedvalue.org
Business
Opportunities &
Challenges
Shared Value is:
Policies and practices that enhance
the competitiveness of a company
while simultaneously advancing the
economic and social conditions in
the communities in which it operates
Shared Value is NOT:
• Sharing the value already
created (philanthropy)
• Personal values
• Balancing stakeholder interests
• Compliance with local
regulations
Social
Needs
Corporate
Assets and
Expertise
Shared Value Recap
Definition of Shared Value

6. 6 sharedvalue.org
Corporations
Governments
Nonprofits
Foundations
Shared Value Recap
The Potential Scale of Shared Value

7. 7 sharedvalue.org
Shared Value Recap
Corporate Social Engagement Portfolio
“Giving back”
Business must fulfill
community
obligations
Corporate
Philanthropy Shared Value
“Finding business
opportunities in
social problems”
Social problems
can be solved by
businesses to
increase profits or
strengthen
differentiation
“Minimizing harm to
society and the
company”
Business should be
responsible
Corporate
Social
Responsibility

8. 1
• Meeting societal needs
through products
• Addressing unserved or
underserved customers
Reconceiving Needs,
Products, and
Customers
3
• Improving the available skills,
supplier base, and
supporting institutions in the
communities where a
company operates to boost
productivity, innovation, and
growth
Enabling Local Cluster
Development
Three Levels of Shared Value
2
• Changing practices in the
value chain to drive
productivity through better
utilsing resource,
employees, and business
partners
Redefining
Productivity in the
Value Chain

9. Examples
• Arauco uses byproducts from its production to
generate additional power
• The significant forest residue that is generated
through core business of forestry, enables electricity
to be generated through biomass
• The power generation lowers the cost of waste
disposal and makes Arauco self-sustainable in its
power balance
• Excess power generation is sold to the local market
and supplies 500,000 residents in the area

10. Examples
• Yara, a Norwegian fertilizer company identified that
its products could significantly improve the yield for
small-holder farmers in Mozambique and Tanzania
however due to poor roads and local infrastructure,
distribution was challenging.
• Formed a collective impact initiative with funding
from a US aid program enabling a cross-sector
partnership to build roads to improve infrastructure
for farmers
• More than 200,000 farmers in Mozambique alone are
expected to benefit and at the same time increase
revenue for Yara.