Creating Shared Value in China: Analyzing the Strategies of Samsung and Alibaba

Abstract

Rapid economic development of China, initiated by Chinese economic reform in 1978, caused various social problems. The gap between rich and poor has been widened and environmental pollution became severe. In response to the problems, Chinese government declared Harmonious society as the new national socioeconomic vision and enforced corporate social responsibility (CSR) activities of firms in China. China Samsung and Alibaba adopted the changes proactively and sought to increase economic value while solving social problems with business method. It corresponded to creating shared value (CSV) strategies presented in Porter and Kramer (2011). However, CSV is still in introducing stage in China and few study exists which analyzed social activities of firms in perspective of CSV. Existing studies which were based on CSR did not provide appropriate explanation about business value which is gained from social activities. To fill this gap, this thesis will study social activities of China Samsung and Alibaba in perspective of CSV strategies. Through the research, comprehensive motivation and strategic value of the activities will be analyzed and improvement strategies will be provided.