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Shared Value Through Inner Knowledge Creation

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Abstract

The notion of shared value presents business with a challenge: to generate social benefit and profit simultaneously. This challenge involves resolving tensions/paradoxes inherent when integrating the apparent contradictory elements of social and economic values. Unfortunately, resolving such tensions is difficult due to the habitual, automatic nature of sensemaking. This paper offers a mechanism whereby individuals can, over time, begin to overcome habitual sensemaking and potentially resolve tensions inherent in shared value. The mechanism is labeled inner knowledge creation (IKC). IKC is described and its role in creating shared value for businesses is illustrated through a conceptual model. The model shows how IKC develops metacognitive capabilities, builds capacities to resolve tensions/paradoxes, and cultivates openness to others’ perspectives.

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  1. Faculty of Business and Law, Auckland University of Technology, Auckland, New Zealand

    Patricia Doyle Corner

  2. Waikato Management School, University of Waikato, Private Bag 3105, Hamilton, New Zealand

    Kathryn Pavlovich

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  1. Patricia Doyle Corner
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Correspondence to Kathryn Pavlovich.

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Corner, P.D., Pavlovich, K. Shared Value Through Inner Knowledge Creation. J Bus Ethics 135, 543–555 (2016). https://doi.org/10.1007/s10551-014-2488-x

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