Creating Shared Value

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    Anonymous User34Anonymous User34

    For this analysis I will be focussing on the work of Michael Porter, an American academic known for his economic theories. I will be discussing his theory of creating shared values which focusses on policies and operation practices that improve the competitiveness of a company, while also improving economic and social conditions in the community where the business is situated. Porter explains how it is vital to implement a capitalist businessmodel to face society’s problems such as hunger, environment and health. Although corporate social responsibility is a factor among good business ethics, Porter believes that creating shared values can be a part of a profitable business model as a result of improved social and economic conditions in the community.</span>As part of corporate social responsibility, Fairtrade products are admired, Porter recommends to act like a capitalist and to work closely and help your supplier improve will allow huge growth in farmers income, raising their income without giving charity but by being a better capitalist. Other samples of creating shared values include Mexican business ‘Urbi’ that created a mortgage financing plan ‘rent-to-own’ which is in contrast to large American banks that promote unsustainable financing vehicles that turned out to be socially and economically damaging.

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