"Shared Value Investing: Rethinking the Relationship between Business, Society and the Investment Community"

Abstract

The market asks for a different leadership corporate approach, especially after the short-term unsustainable pursuit of profits of the recent financial crisis, when many companies faced irremediable costs and found their reputation vanishing. This study revolves around the innovative business concept of Creating Shared Value (CSV), which has gained increasing engagement across businesses, especially since the publication of the relative article by Michael E. Porter and Mark R. Kramer in 2011. Creating Shared Value is a business strategy in which companies can find business opportunities by serving social problems through their core business operations. CSV firms are not recognized for their philanthropy or corporate social responsibility (CSR), but primarily for their innovative projects’ ability to generate real business value to the firm while providing positive social impact to the community and the environment. The research involves a quantitative and qualitative analysis of the economic performance of listed leading firms that are best ranked for their CSV approach. In particular, the thesis investigates the determinants of returns and market valuation for firms that have adopted a “Shared Value” perspective. The study aims at evaluating the corporate performance and the degree of investors’ attractiveness to companies that favour CSV investments.