Creating Shared Value through Green Management of Social Enterprises:

Purpose: Rapid changes of view on social value require businesses to obtain a new corporate legitimacy for their survival. It implies that the simple activities of companies, such as making donations as part of corporate social responsibility (CSR) schemes, cannot work anymore for obtaining corporate legitimacy. Therefore, companies are proactively responding to these changes in social value by leveraging on the new management strategies concerning the social economy. This study confirms the effectiveness of the company s performance through green management and creating shared value for companies to respond to changing environment. Composition/Logic: This study describes the changes in the business environment according to the needs of the social economy, and examines the possibility of coexistence of green management and shared value creation. It analyzes various cases to confirm that corporate legitimacy is achieved through the subsequent practice of creating shared value of social enterprise by green management. In conclusion, based on the results of this case study, we consider the strategic implication of creating shared value, which includes securing new markets and corporate legitimacy at the same time. Findings: Creating shared value through the green management approach is confirmed as a valued business strategy. Corporate legitimacy is secured by solving social problems through the application of green management on a company’s core competencies. Subsequently, businesses are equipped to gain new competitive advantage by creating shared value. Eventually, the establishment of a system for facilitating stakeholder cooperation is most crucial for creating shared values over the business. Originality/Value: The requirements for the social economy and corporate legitimacy will continue to grow in future. One of the top priorities of a company for its survival would be to undertake efforts to respond to these changing demands. Through a case study on creating shared value through green management, this research presented a new perspective on recognizing the market environment and proposed a management strategy that can take advantage of the possibility to respond to rapid changes in the market now.