Corporate Social Responsibility (CSR) and Creating Shared Value (CSV) are important concepts which are often inaccurately used as synonyms for one another. From my understanding of “Creating Shared Value” by Michael Porter and Mark Kramer, CSV supersedes CSR. As depicted in the excerpt (left), societal benefit is much more central to CSV programs in comparison to CSR programs, and it is seen as an opportunity to maximize profits rather than an obligation that increases costs.

From those which reduce pollution to those which donate portions of sales to charity, we can name many socially responsible companies. However, naming a corporation which integrates CSV into their business model is challenging. One such company that I have followed ever since its appearance on Dragon’s Den is Ten Tree Apparel. With its business model centered around planting trees for every clothing item purchased, the brand has not only reached the innovation stage of sustainability, it has also differentiated itself from other clothing brands and established a competitive advantage over them. The key activities which Ten Trees employs to create shared value are outlined in my diagram below.

Ten Tree Apparel’s customer segment consists of environmentally concerned individuals. The company is able to appeal to these consumers by implementing the above-mentioned practices. In doing so, it epitomizes the central idea of CSV: maximizing profit by solving society’s problems.

Check out their pitch on Dragon’s Den. 

Additional Sources: http://www.tentree.com/ca/company

Image Sources: My own screenshot and value diagram.

Youtube Video: https://www.youtube.com/watch?v=4oe8w998E00