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.
University Politehnica of Bucharest
Address: Spl. Independentei nr. 313
This project has been funded with support from the European Commission. This website reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein.