CITIBANK & HSBC
D Siddhartha Reddy-014
How to reinvent capitalism and unleash a wave of innovation and growth by Michael Porter and Mark Kramer
Shared Value is a new form of capitalism. The idea of shared value was initially explored by the authors in December 2006 HBR. Shared value is not social responsibility, philanthropy, or even sustainability, but a new way to achieve economic success. In the article Porter & Kramer criticize neoclassical thinking on the trade-off between societal needs and economic success, and the way the concept of ‘externalities’ have shaped corporate and policy strategy. Article says that corporations …show more content…
They also require public assets in the community: education, utilities, competition policy, and a strong legal framework. * Firms create shared value by building clusters to improve company productivity while addressing gaps or failures in the framework conditions surrounding the cluster. * Cluster development benefits both the company and society. * To support cluster development companies need to identify gaps and deficiencies in the community that have an effect on their own productivity and growth. This is where shared value comes from. * This is different to CSR initiatives where there is minimal relationship between the firm and the societal need, thereby shared value is not created.
Creating shared value
1. Citi Bank
Citibank, one of the major international banks, is the consumer banking arm of financial services giant Citigroup. Citibank was founded in 1812 as the City Bank of New York, later First National City Bank of New York. As of March 2010, Citigroup is the third largest bank holding company in the United States by total assets, after Bank of America and JPMorgan Chase.
Citibank has retail banking operations in more than 160 countries and territories around the world. More than half of its 1,400 offices are in the United States, mostly