Here’s an important interview with Professor Michael Porter, in which he discusses his latest business concept of “creating shared value.” In the video, he gives an overview of the idea he and his coauthor, Mark R. Kramer, lay out in detail in the Jan-Feb 2011 edition of Harvard Business Review in the article: How to Fix Capitalism.
Porter must be taken seriously on this
Porter is not easily dismissed when it comes to discussions of business, as he is the academic who developed the theory of competitive advantage.
In short, Porter proposes that business take a broader perspective into account when formulating strategy. Instead of corporate social responsibility efforts, which are often criticized as empty PR efforts or as businesses meddling in charitable causes with shareholder money, Porter proposes that they take a broader view of self-interest and address the needs of the communities in which they operate. [Read more...]