HBR article by Michael E. Porter and Mark R. Kramer, January–February 2011
“The capitalist system is under siege,” say Porter and Kramer. Business increasingly is viewed as a cau of social and environmen-tal problems, and that has led government officials to t policies that undermine competitiveness. To remedy this, the authors suggest a new purpo for the corporation, one defined by “creating shared value” with society. Moving beyond the idea of trade-offs—profits for social good—shared value “recognizes that societal needs, not just conventional economic needs, define markets.”
If you want business to make different choices, you must give them reasons to do so. If the idea of shared value moves to the mainstream, it will be becau of meaning-ful regulatory changes. Business leaders have an important role to play in bringing about such political change, but anyone who takes a stand on one side los friends on the other.
Atilla Habip, partner, The Ripples Group
The authors’ theory works with elements of human motivation. However, I can’t e it gaining traction. Pride, egocentricity, na-
tionalism, bigotry, racism, and xenophobia are all hurdles here. You have to start with the individual.
Julie Pigdon, business development, Team Man-agement Systems
关系代词
Shared value is nothing more than 21st-century cheerleading. It will never happen. Business has only one requirement: to make a profit. The rallying cry is for govern-ment regulation, but regulation is always a respon to a business wrong. Sarbanes-Oxley, for example, was a checklist of the wrongs perpetrated by Enron. Business
believes something is wrong only
when it gets caught.
Joph M. Galante, account-ing program manager, King’s College腓特烈大帝
How will a generation of businesspeople steeped
in discounted-prent-value analytics and quarterly earnings come to believe in the power of investment in urban markets or in extending larges to ctors not directly reflected in income statements? What will the folks at Goldman Sachs make of this? I don’t e a definition of “shared value” with anywhere near the cohesion of “share-holder value” or “competitive advantage.” The answer may be treating business as yet another social institution, rather than something with a uniqu
e and lf-defining inner logic. There may be no home-run solution out there; there may simply be another decade or two of coming to grips with the idea that business has to change in a thousand ways. “Creating Shared Value” could be a contribution. But it doesn’t feel like a solution, not yet.
闪字组词Charles H. Green, founder and CEO, Trusted Advisor Associates
Can we permanently replace the term “growth” with “sustainability”? “Growth” implies a mental climate that perpetuates dated, detrimental neoclassical concepts.
Eli Holowicki, office coordinator, Lunchbox LP
Preparing for the Big Mobile Revolution
HBR Agenda item by Eric Schmidt, January–February 2011
Before stepping down as CEO, Schmidt revealed that most of Google’s strategic
initiatives in 2011 would be mobile—and would include mak-ing smartphones accessible to the poor: “We envision literally a billion people getting inexpensive, browr-bad touch-screen phones over the next few years.”
I have a PhD student working on an ethnographic study of how village farmers in Bangladesh have integrated
mobile phones into their lives and work. He found that it is not smart-phones they need, but devices that
make n to people who are partially literate in Bengali and less literate in En-glish. They managed to find ways of using the phones to help them, but they ud notebooks to store numbers becau they couldn’t understand the phone’s address book. And the one phone with a Bengali interface ud a word for “lect an op-tion” that means “vote in an election” in Bengali.
Dr. David Newman, former lecturer, Queen’s University Management School
16 Harvard Business Review April 2011
Interaction
I L L U S T R A T I O n : M A T T D O R F M A n
梦到牙齿掉了
Companies need to engage all players in this new value ecosystem. This requires both a left-brained, economically driven component, which the article describes in detail, and a right-brained, experience-bad component, which the article does not address. Venkat Ramaswamy and I described this aspect of value creation in our October 2010 HBR article, “Building the Co-Creative Enterpri.” Shared value is the goal. Co-creation is the process to get there.
Francis Gouillart, president, Experience Co-Creation Partnership
Porter responds: The opportunity for co-creation does not mean that industry structure (the fi ve forces) becomes unim-portant. There is always the question of how to divide the pie, however large that pie might be. Shared value off ers new ways to collaborate to expand the pie by riveting attention on society’s unmet needs. But ef-forts to create shared value must recognize the hard-nod reality of market competi-tion, or shared value will go the way of many well-meaning ideas tha
t were never implemented. I would caution against the idea that creating shared value replaces past management thinking. Let us not create a fal dichotomy between shared value and the core economic principles of competition, but harness the connection.
People in developing countries u “trickle down” technologies. We should not oppo this trend but u technology to our advantage. Any translation is better than no translation. I will gladly take smartphones and readily adapt mylf to them.
Samir Shah, Mumbai
executive.mit.edu/hbr
Phone: +1.617.253.7166 | Email: sloanexeced@mit.edu
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