The Limits of Consequential Reasoning in Shared Value Creation
Abstract
This paper aims to move beyond the limits of creating shared value (CSV) by presenting a norms-driven framework for creating shared value. Design/methodology/approach: This 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. Findings: CSV 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/value: This paper critiques an existing framework for creating shared value and proposes a new framework.