Original Research

Effecting successful shared value creation: The role of organisations in fence-line communities

Ronel Kotze, Karl Hofmeyr
South African Journal of Business Management | Vol 53, No 1 | a2992 | DOI: https://doi.org/10.4102/sajbm.v53i1.2992 | © 2022 Ronel Kotze, Karl Hofmeyr | This work is licensed under CC Attribution 4.0
Submitted: 11 October 2021 | Published: 17 May 2022

About the author(s)

Ronel Kotze, Gordon Institute of Business Science, Faculty of Economic and Management Sciences, University of Pretoria, Johannesburg, South Africa
Karl Hofmeyr, Gordon Institute of Business Science, Faculty of Economic and Management Sciences, University of Pretoria, Johannesburg, South Africa


Purpose: Society’s expectations of business are said to be increasing, with business expected to play an influential role from a triple bottom line perspective. Shared value creation is a new, emerging theme in the literature on corporate social responsibility (CSR). The stagnating South African economy, the increasing incidence of protests against community conditions and the increased expectations of stakeholders for business frame the study.

Design/methodology/approach: This qualitative research study aimed to gain insight into how shared value creation could be effected in a developing country. Additionally, it provided insights into the reason for the nature of the expectations, the approach in effecting shared value creation, and the benefits that could be realised by employing this business model.

Findings/results: The study found that shared value creation can be effected successfully through a partnership between government, business and communities together with strong inter-stakeholder. Measurement of outcomes and feedback to the various stakeholders will strengthen relationships with employees and fence-line communities and lead to improved business performance. Benefits were identified as improved social capital, reduced dependency on companies and a sustainable business.

Practical implications: This concept proposes an approach to social responsibility that will enhance the competitive advantage of the firm and is presented as strategic CSR. Numerous literary contributions have criticised the concept for being too vague in its approach and for being built on western world principles.

Originality/value: Understanding the role of institutions (or lack thereof) in ecosystems and the networks that are established and required was considered important in furthering the operationalising of social responsibility concepts such as shared value creation.


shared value; stakeholders; fence-line communities; social capital; communication; partnerships; sustainability


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Crossref Citations

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doi: 10.61093/hem.2023.4-01