Lilly is increasingly using a modern approach to corporate responsibility known as “shared value.” Shared value is created when a business applies its unique assets and expertise to a pressing societal need in which the company has a vested, commercial interest. This modern approach differs from traditional corporate responsibility, which is often built around philanthropy and less focused charitable giving to a variety of causes that are frequently unrelated to the business.
Companies can create shared value in three distinct ways:
- reconceiving products and markets
- redefining productivity in the value chain
- building supportive industry clusters around company locations
The Lilly NCD Partnership is focused on strengthening clusters around the delivery of healthcare solutions for people with diabetes in developing countries, and we are exploring other innovative approaches to create shared value in key emerging markets.
While our corporate responsibility efforts are increasingly focused on creating shared value, there will always be a place for traditional philanthropy. We believe that finding the right mix of approaches leads to the greatest impact.
What is Shared Value?
Michael Porter, a leading authority on competitive strategy and head of the Institute for Strategy and Competitiveness at Harvard Business School, and Mark Kramer, Kennedy School at Harvard University and co-founder of FSG, introduced the concept of shared value.
We are a member of the Shared Value Initiative, a global community of organizations committed to driving the adoption and implementation of shared value strategies among leading companies, civil society, and government organizations. Learn more here.