Creating Shared Value and Impact Investing
Course Number 1415
Professor Shawn A. Cole
Visiting Instructor Mark Kramer
Fall; Q1; 1.5 credits
This course examines two important new developments in the practice of business: Creating Shared Value and Impact Investing. Creating Shared Value, developed by Mark Kramer and Michael Porter, argues that firms can achieve competitive advantage while simultaneously advancing the economic and social conditions in the communities in which they operate. The cases, developed by Kramer and Porter, focus on three primary ways this is achieved: reconceiving products and markets; redefining productivity in the value chain; and enabling local cluster development. Michael Porter will lead a summary lecture and discussion.
We define Impact Investing as engaging in the practice of investing with the goal of achieving both high social impact and a return on capital invested. We will examine a wide range of models, from those which seek above-market returns by focusing on creating social value, to those which seek to use the power of financial incentives to unlock innovation and transform the social sector. Most class days of both modules will feature a guest.