The 6th Force
September 18, 2011 11:29 AM Subscribe
Capitalism is an unparalleled vehicle for meeting human needs, improving efficiency, creating jobs, and building wealth. But a narrow conception of capitalism has prevented business from harnessing its full potential to meet society's broader challenges. The opportunities have been there all along but have been overlooked. Businesses acting as businesses, not as charitable donors, are the most powerful force for addressing the pressing issues we face. The moment for a new conception of capitalism is now; society's needs are large and growing, while customers, employees, and a new generation of young people are asking business to step up. The purpose of the corporation must be redefined as creating shared value, not just profit per se. This will drive the next wave of innovation and productivity growth in the global economy. It will also reshape capitalism and its relationship to society. Perhaps most important of all, learning how to create shared value is our best chance to legitimize business again.
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~ Creating Shared Value by Michael Porter & Mark R. Kramer
on Rethinking Capitalism and the snippet HBR version if you don't want to read the PDF
Porter at Davos leading a discussion among several top government officials and CEOs about "A Social Contract for the 21st Century
THE speed of management fads is so rapid these days that Michael Porter's idea of "shared value", which I wrote about only a few weeks ago, is already challenged by an even more socially-sensitive rival: "thick value".
~ Schumpeter at The Economist