Questions and Answers
What is the central theme of the article 'Creating Shared Value'?
Reinventing capitalism to unleash innovation and growth.
The purpose of the corporation should focus only on maximizing profits.
False
Which of the following companies is mentioned as having embraced corporate responsibility?
The capitalist system is under ______.
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What has reduced trust in business according to the article?
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Study Notes
Capitalism Under Siege
- The capitalist system faces significant criticism and challenges, being seen as a contributor to social, environmental, and economic issues.
- Businesses are often viewed as profiting at the expense of the broader community, eroding public trust and legitimacy.
Need for a New Corporate Purpose
- There is a call for the purpose of corporations to be redefined, moving from profit maximization to creating shared value.
- Shared value focuses on addressing societal needs while driving business success, suggesting a core transformation in business thinking.
Examples of Companies Creating Shared Value
- Notable corporations like GE, Google, IBM, Intel, Johnson & Johnson, Nestlé, Unilever, and Wal-Mart are leading initiatives aimed at creating shared value.
- These companies are redefining their strategies to incorporate societal impacts into their business models, demonstrating that corporate responsibility can align with economic performance.
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Description
Explore the transformative concept of creating shared value as discussed by Michael E. Porter and Mark R. Kramer. This idea aims to reinvent capitalism by blending economic success with social progress, fostering innovation and growth. Dive into the insights presented in this pivotal article from the January-February 2011 issue of HBR.
