at When a business brain like Michael E. Porter talks, people listen. He’s a Harvard Professor with 18 books published to his name and is believed to be the most cited author in business and economics (according to Wikipedia).
He also has some interesting views about capitalism.
In this interview by Harvard Business Review editor Adi Ignatius, Porter calls for the next evolution of capitalism to get going already.
“Increasingly companies are being perceived as creating profits at the expense of the community… We need to think differently: what’s good for society is actually good for business.”
In the recently-published paper, Rethinking Capitalism, Professor Porter recommended “creating shared value” for both businesses and society.
“Creating societal benefit is really a powerful way to create economic value for the firm.”
“By actually creating products that are not just dealing with contrived needs or trying to force products onto the customer… If we create products that are actually ‘good’ for the customer – nutritionally good, environmentally good, help them save, help them raise their family in a better way – actually that’s the right way to make economic profit.”
(Hat-tip: Jennifer Bishop)