Abstract

While capitalism has proven to be one of the most efficient economic engines in modern history, the goal of simply pursuing profit has, according to many, left some of society’s needs unmet if not further challenged. In 2006, Porter and Kramer developed the notion that corporations could and should pursue a higher goal of capitalism including “creating shared value” as a means to improve performance and bridging the gap that developed between corporations and society. The concept was welcomed within both academia and the corporate world for the amount of energy it has generated, its potential to improve capitalism and repair what Brigley referred to as the “fractured contract”. However, it is being equally critiqued for lacking in definitional clarity causing inconsistent strategy, and lacking in originality vis-a-vis existing concepts such as Corporate Social Responsibility. This paper proposes corporate virtue as a form of CSV, by identifying two theories which demonstrate how corporate virtue meets the definitional requirements of CSV and helps both the corporation and society fulfil unmet needs.