The Limits of Consequential Reasoning in Shared Value Creation

Abstract

PurposeThis paper aims to move beyond the limits of creating shared value (CSV) by presenting a norms-driven framework for creating shared value.Design/methodology/approachThis paper combines insights from organizational studies and philosophy to critique CSV and to articulate an alternative model for integrating the pursuit of profit with social needs and demands.FindingsCSV poses significant challenges for managers due to the problem of bounded rationality. Rather than merely engaging in a logic of consequence, this paper argues that managers should integrate norms-based reasoning within the cognitive process of strategic management.Originality/valueThis paper critiques an existing framework for creating shared value and proposes a new framework.