Enlightened shared value: a new stakeholder approach to corporate social responsibility

Purpose - This paper aims to provide a new conceptual approach to corporate social responsibility (CSR), termed enlightened shared value (ESV), by applying the social dilemma paradigm and long-term value maximization. Design/methodology/approach - In this conceptual paper, the author analyzes CSR as an organizational social dilemma, where the conflicts among stakeholders and between short- and long-term outcomes are inevitable. To minimize these conflicts, firms need to aim at long-term value maximization to provide the maximum outcome to the firm and satisfy all relevant stakeholders. Adopting these perspectives, the author introduces ESV and compares ESV with major CSR approaches. Findings - ESV provides a clear metric and the method for CSR, which is lacking in existing CSR approaches. Consequently, ESV is superior to and has better applicability than existing CSR approaches. The author suggests that shifting focus to long-term outcomes can reduce the conflicts in CSR and make CSR a win-win game. Originality/value - As an alternative to existing CSR approaches, ESV can provide the best outcome to the firm and all relevant stakeholders. ESV adds the understanding of CSR’s theoretical discussions and provides a practical guideline to practitioners.