(Community Matters) Harvard Professor Michael Porter and Dr. Mark Kramer say we should focus on Creating Shared Value (the principle of shared value, which involves creating economic value in a way that also creates value for society by addressing its needs and challenges.) It’s the intersection between society and corporate performance
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.
McKinsey & Company’s last (2009) Corporate Social Responsibility survey results – overwhelming (80%+) consensus of long term shareholder value from environmental, social and governance programs constituting CSR. Investment professionals see even more value than CFOs. “By wide margins, CFOs, investment professionals, and corporate social responsibility professionals agree that maintaining a good corporate reputation or brand equity is the most important way these programs create value,” followed by attracting, motivating and retaining the right employees.