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Danone’s One Planet.

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Pepsi tried a similar initiative in India to improve the yield from potato farming for their Lays brand.Innovation plays a major role in creating shared value.

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Johnson & Johnson’s Reach Every Mother and Child initiative is a testimony to this approach.By developing affordable healthcare solutions for underserved populations, the company has improved public health outcomes while expanding itsmarketpresence in emerging economies, or as CK Prahlad advocated, the bottom of the pyramid.Companies must also re-engineer their value chains to truly realise shared value.

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Levi Strauss & Co., for instance, transformed its supply chain through the Water

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Impact measurement is much easier today and this could become a normal practice in annual reports.

Enterprise boards can play a key role taking a leaf out of the environmental, social and governance (ESG) reporting being mandated by many regulators across the world.Maximising shareholder value had triggered the failure of capitalism as we know it and perhaops the shared value concept can remodel its future.

Research from Harvard Business School reveals that firms adopting shared value strategies report stronger long-term performance.When profit meets purpose and impact fuels innovation, the real magic happens—because everyone benefits.

Corporations might just about save capitalism from extinction by rephrasing Druckerism: The business of business is now business for good!The writer is Fortune-500 advisor, start-up investor and co-founder of the non-profit Medici Institute for Innovation.

X: @MuneerMuh.(Disclaimer: Views expressed are personal and do not reflect the official position or policy of Financial Express Online.

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