Creating shared value as a differentiation strategy – the example of BASF in Brazil

Abstract

Purpose

This paper aims to create empirical evidence regarding shared value strategies recently propagated by Michael Porter and Mark Kramer.

Design/methodology/approach

The authors analyze a single case study of a collaboration between BASF, André Maggi Group and Fundação Espaço Eco in Brazil. The objective is to evaluate whether the applied strategy can be considered as a case of shared value creation.

Findings

The case study on the collaboration between BASF, FEE and the André Maggi Group does qualify as a shared value strategy, more precisely as a case of redesigning productivity in the value chain.

Research limitations/applications

This single case study creates some evidence for shared value strategies; however, more research is needed to generalize the results.

Practical implications

The socio‐eco‐efficiency analysis offered by Fundação Espaço Eco creates a differentiation strategy for BASF in Brazil. The work enables BASF's clients to reduce negative impacts while increasing their financial, social and environmental performance.

Originality/value

This paper is the first empirical verification of the shared value concept. It demonstrates that shared value strategies do enhance financial as well as socio‐environmental performance and build stronger client relationships.

Citation

Spitzeck, H. and Chapman, S. (2012), "Creating shared value as a differentiation strategy – the example of BASF in Brazil", Corporate Governance, Vol. 12 No. 4, pp. 499-513. https://doi.org/10.1108/14720701211267838