Companies today are operating in a more complex and competitive environment where traditional models for doing business are no longer sufficient and expectations of business are growing both internally and externally. In her opening remarks at the National Academies of Sciences, Engineering, and Medicine’s workshop, Exploring Shared Value in Global Health and Safety, Brenda Colatrella from Merck emphasized this evolving context for businesses and pointed to the expectations of the role of the private sector in achieving the Sustainable Development Goals as evidence.
Elaborating on the current environment in which companies operate, Colatrella noted that many companies have long and robust histories of contributing to their communities as well as to more global societal needs, but this has been done primarily and historically through philanthropy and more traditional corporate social responsibility. These mechanisms, which are not part of the core business, are still meaningful and useful, and Colatrella believes they do play and will continue to play an important role in how companies contribute to society. However, companies are increasingly seeking greater alignment of these activities with their
1 The planning committee’s role was limited to planning the workshop. The workshop summary has been prepared by the rapporteurs as a factual account of what occurred at the workshop. Statements, recommendations, and opinions expressed are those of individual presenters and participants and are not necessarily endorsed or verified by the National Academies of Sciences, Engineering, and Medicine. They should not be construed as reflecting any group consensus.
business interests in order to increase their value proposition. These same companies are also under increased pressure to build their business in a sustainable manner through innovative approaches.
Given this context, companies are looking for new methods to both contribute to society and build their business. Such opportunities and their benefits were articulated in 2011 by Michael Porter and Mark Kramer as creating shared value (Porter and Kramer, 2011). Some organizations have embraced the shared value methodology wholeheartedly, while others are in the process of evaluating its value and what it means for their particular company or sector. Some have decided to go in a different direction, and still others have put their own twist on shared value. Many have chosen a portfolio approach, having a mix of philanthropic, socially responsible, and shared value initiatives. Those who continue to engage through philanthropic or corporate social responsibility frameworks often acknowledge that the shared value methodology is influencing aspects of their engagement strategies. As illuminated by many of the workshop speakers and captured in this report, how shared value is being defined and applied is emergent and contextual, and the journey toward it is long and complex.
Efforts have been made and continue to document specific examples and case studies of shared value creation in health, documenting both business and social outcomes of such initiatives. Harvard Business School has published case studies and the global consulting firm FSG has documented and disseminated many of these cases as well. Some of these examples are mentioned briefly in this report to highlight challenges and opportunities discussed at the workshop. However, the intention of this workshop was to explore the several dimensions of shared value initiatives in depth, and not to systematically document the impacts of shared value initiatives. The text uses case studies, which include measures of impact, to illustrate these dimensions, but they are ancillary to the main purpose of the workshop. The workshop and the resulting report serve to illuminate the evolution of private sector in engagement in global health since the Porter and Kramer’s 2011 article “Creating Shared Value,” and explore its current and potential impacts on global health stakeholders and the field broadly (see Box 1-1). The workshop examined this evolution and impacts through the perspectives of companies as well as other implementers of global health initiatives, such as nonprofit organizations, foundations, and development agencies. The workshop and the resulting report document these perspectives included at the workshop. It does not serve as comprehensive review of the topic and its impacts. Notably, based on decisions to narrow the focus of the workshop to allow for in-depth exploration on selected issues related to shared value creation, the impacts on and perceptions of communities that are recipients of shared
value based initiatives are not included in depth in this report. This does not represent a prioritization of the issues related to shared value but rather a strategic focus for the 2-day workshop agenda.
During the 2-day workshop, participants considered potential opportunities for creating shared value for all organizations, specifically the creation and impact of shared value through an organization’s core products and services, through employee health and wellness programs, and through community or population health investments. Organizations that are creating true shared value are using their core capabilities and competitive advantages to address a wider range of social challenges. Colatrella suggested that the application of shared value to improve global health may seem to be a natural fit for health care−sector companies with health as a core component of their business, where one could argue that these companies are creating shared value almost inherently by the nature of their business. However, one of the questions explored in the workshop was whether opportunities existed for all companies to positively impact health through their core products and services as well as through investments in employee and community health programs. For example, all companies, regardless of their core business, have the opportunity to implement programs that address the health and well-being of their employees. If done well, these steps could result in improved employee health, enhanced productivity, and reduced health costs over the long term, thus leading to improved financial performance. Community and population health can also be improved, particularly in areas where these organizations operate. The result could be healthier communities as well as greater value to the companies, perhaps in the form of enhanced reputations or improved community relationships. Exploring the potential for shared value includes not only examining the results achieved through a shared value approach, but also the journey to shared value creation, including the limits and challenges. Beyond the opportunities for and journey to shared value in global health, the workshop also examined how to measure the impact of these efforts. Most sustainability and integrated reporting efforts do not currently include health and health metrics, and the workshop explored whether they should.
The workshop was organized as an activity of the Academies’ Forum on Public−Private Partnerships for Global Health and Safety (PPP Forum). The PPP Forum was launched in late 2013 with the objective to foster a collaborative community of multisectoral health and safety leaders to leverage the strengths of multiple sectors and disciplines to yield benefits for global health and safety. The Academies provides a neutral platform to convene the forum. By regularly gathering and learning from leaders of diverse, exemplary, and innovative entities, the PPP Forum explores more effective global health initiatives that capitalize on the complemen-
tary assets and motivations of the sectors involved. The concept of PPPs to advance global health is well established, and various other groups offer convening activities to develop and share relevant knowledge. This forum, however, seeks to uniquely add value to complement many of those efforts. The membership is committed to engaging the expertise of its members and broader groups of stakeholders, its resources, and its networks to identify opportunities to catalyze partnerships; to elaborate norms that protect the interests of those partnered and those served; to capture and share insights, evidence, and practices for decision making
and resource allocation for partnerships; and to foster innovations that may increase efficiencies and equitable access to effective care.
The PPP Forum workshops are an opportunity to share lessons learned and promising approaches, and to discuss how to improve future efforts in areas of global health and safety promotion that have been prioritized by Forum members. Held on December 3–4, 2015, Exploring Shared Value in Global Health and Safety was the fourth public workshop of the PPP Forum and it reflects the growing impact of shared value creation on the work and activities of the PPP Forum members and, more broadly, the global health community.
This report provides a summary account of the presentations and discussions at the workshop. Opinions expressed within this summary are not those of the Academies, the PPP Forum, or their agents, but rather of the presenters themselves. Such statements are the views of the speakers and do not reflect conclusions or recommendations of a formally appointed committee. This summary was authored by designated rapporteurs based on the workshop presentations and discussions and does not represent the views of the institution, nor does it constitute a full or exhaustive overview of the field. The summary report is complemented by a background paper on shared value in global health that was prepared in advance of the workshop and is included as Appendix A. The workshop agenda and biographical sketches of workshop speakers are included as Appendixes B and C, respectively.