Abstract : Today, companies are expected to improve their economic benefits and social value and contribute to society. Due to this tendency, businesses now employ various strategies to satisfy their stakeholders while balancing their social and business objectives. This study focused on how the banks integrate their business activity with the welfare of people and the environment from a shared value creation and social responsibility perceptive. Specifically, the study investigated the effect of shared value creation and social responsibility on competitive advantage. This study was conducted on two selected commercials in Ethiopia. The target group of this study was customers selected from commercial banks in Ethiopia. The survey was distributed to 463 respondents from selected commercial banks in Ethiopia. A convenience sampling method was used to select the respondents. The data were analyzed by using the Structural Equation Model (SME). The outcomes of this study show that the practice of shared value creation contributes to increasing the competitive performance of the banks. Implementing shared value-creation practices directly and positively affects the bank's competitive advantage. On the other hand, the bank's social responsibility practices contribute to gaining a competitive advantage. The key contribution of this study is the empirical verification of the competitive advantage achieved by companies that apply shared value-creation and social responsibility practices