Harvard Business Review’s Jan 2011 issue had absolutely fascinating subject presented by none other than the esteemed Michael E. Porter and Mark R. Kramer.
The subject was all about “Creating Shared Values”. As one can see from the innumerous comments on the article, this is a subject that evinces a lot of comments. Good and bad. Positive and negative. But that’s not the issue. The issue is the fact that globally businesses have come to realise that there is an acute need to re-look at their value chains. Specifically the points of the value chain where it intersects and interacts with society and fulfills social needs. More details on what is shared value is here.
The interesting point about this concept from Prof. Porter is the key fact of businesses recognising the need for change in the business model that’s been in use. Moving away from a ‘stakeholder profitability’ model towards the more ‘community benefit’ oriented model.