Creating shared value as a differentiation strategy – the example of BASF in Brazil

Purpose - This paper aims to create empirical evidence regarding shared value strategies recently propagated by Michael Porter and Mark Kramer. Design/methodology/approach - The authors analyze a single case study of a collaboration between BASF, AndreMaggi Group and Fundacao Espaco Eco in Brazil. The objective is to evaluate whether the applied strategy can be considered as a case of shared value creation. Findings - The case study on the collaboration between BASF, FEE and the AndreMaggi Group does qualify as a shared value strategy, more precisely as a case of redesigning productivity in the value chain. Research limitations/applications - This single case study creates some evidence for shared value strategies; however, more research is needed to generalize the results. Practical implications - The socio-eco-efficiency analysis offered by Fundacao Espaco Eco creates a differentiation strategy for BASF in Brazil. The work enables BASF's clients to reduce negative impacts while increasing their financial, social and environmental performance. Originality/value - This paper is the first empirical verification of the shared value concept. It demonstrates that shared value strategies do enhance financial as well as socio-environmental performance and build stronger client relationships. Keywords BASF, Fundacao Espaco Eco, Sustainable development, Brazil, Shared value, Efficiency, Organizational performance, Management strategy Paper type Case study

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