If you’re interested in corporate social responsibility you need to watch Rethinking Capitalism. In this video, Harvard Business School Professor Micheal E. Porter explains why business leaders should create products and services that benefit not only the company but also society. It’s an overview of Creating Shared Value, the subject of a recent article inHarvard Business Review co-authored by Porter and Mark R. Kramer.
Here’s what you need to know about Creating Shared Value:
- Creating Shared Value is a shift in mindset: from the belief that what’s good for business is good for society to thinking that what’s good for society is actually good for business.
- Creating societal benefit is a powerful way to create economic value for firms. Professor Porter sites the environment as an example: making products that are good for the environment is a much more powerful way to create economic value than donating to environmental organizations.
- Business has “maxed-out” on meeting the conventional needs of consumers. Moving forward, the opportunity for business lies in addressing societal needs such as health and the environment.
- The current model on how to compete had been tapped-out. The new approach to differentiation will be based on thinking deeply about human needs and directly addressing these needs in products and services.
Paul also writes a blog about Corporate Responsibility for Canadian Business online, sits on the Advisory Board for the Centre for CSR at the Queen's School for Business, and has written extensively for publications in Canada and the United States.