In this session we explore the idea of Shared Value. It is easy to assume that corporations have always existed exclusively to maximize returns for shareholders. But historically that was not always the case. In the nineteenth century many U.S. states required companies to demonstrate a societal benefit in order to obtain limited liability.

Over time this view shifted. A famous turning point came in 1919 when the Dodge brothers sued Henry Ford after he chose to reinvest profits in higher wages and community development rather than maximizing dividends. The court ruled that a corporation should be run primarily for the profit of its shareholders. Decades later this idea became deeply influential through the work of Milton Friedman.

But as globalization expanded and environmental and social challenges became more visible, alternative ideas began to re-emerge. In 2006, Michael E. Porter introduced the concept of Creating Shared Value: the idea that companies can strengthen their competitiveness by understanding and expanding the value they create for society.

Nearly twenty years later, however, the practical challenge remains. Many companies say sustainability is integrated into their strategy, yet in practice it often sits in a silo. Financial performance and sustainability metrics are reported side by side, but rarely is there a serious attempt to understand how they actually influence one another.

If sustainable business development is to become possible, companies need better ways to connect impact with financial performance.

To explore how this can be done in practice, we invited Marc Pfitzer, a global strategy advisor since 30 + years, with several articles on todays subject published in the Harvard Business Review and he also lecture at the Stockholm School of Economics.

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