EconPapers    
Economics at your fingertips  
 

Shared value economics: an axiomatic approach

Francisco Salas-Molina, Juan Antonio Rodr\'iguez Aguilar and Filippo Bistaffa

Papers from arXiv.org

Abstract: The concept of shared value was introduced by Porter and Kramer as a new conception of capitalism. Shared value describes the strategy of organizations that simultaneously enhance their competitiveness and the social conditions of related stakeholders such as employees, suppliers and the natural environment. The idea has generated strong interest, but also some controversy due to a lack of a precise definition, measurement techniques and difficulties to connect theory to practice. We overcome these drawbacks by proposing an economic framework based on three key aspects: coalition formation, sustainability and consistency, meaning that conclusions can be tested by means of logical deductions and empirical applications. The presence of multiple agents to create shared value and the optimization of both social and economic criteria in decision making represent the core of our quantitative definition of shared value. We also show how economic models can be characterized as shared value models by means of logical deductions. Summarizing, our proposal builds on the foundations of shared value to improve its understanding and to facilitate the suggestion of economic hypotheses, hence accommodating the concept of shared value within modern economic theory.

Date: 2020-05
New Economics Papers: this item is included in nep-gth, nep-hme and nep-hpe
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://arxiv.org/pdf/2006.00581 Latest version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2006.00581

Access Statistics for this paper

More papers in Papers from arXiv.org
Bibliographic data for series maintained by arXiv administrators ().

 
Page updated 2022-08-29
Handle: RePEc:arx:papers:2006.00581