Porter’s «shared value», a type of co- ?
Michael Porter proposes to rede!ne capitalism based on
the idea of “shared value”. His idea involves reducing the
negative impact of companies in society (the economy’s
negative externalities: for example, pollution, considered
inevitable until now for manufacturing operations)
and increasing their positive impact on it (for example,
stimulating quali!ed employment in a population through
long-term training strategies). «e company’s main function
should be to meet the needs of citizens, who periodically
also become customers if what the company is
o#ering also has value for them.
«is shared value would be the set of “policies and operating
practices that enhance the competitiveness of a company
while simultaneously advancing the economic and social
conditions in the communities in which it operates”. With
a mutual commitment that goes beyond its contribution
to social progress through the payment of its taxes and job
creation. «e impact may be much greater if the company,
for example, creates more e$cient ideas and products that
are also eco-sustainable, thus generating a bene!t for citizens/
consumers (in their personal !nances), the community
(better use of available resources) and the planet as a
whole (less pollution).
«e idea behind this is that not all bene!ts are good.
«ose that are good are good for all the agents involved.
And society is always one of the main agents. A company
must look to prosper (do well) by having a positive impact
on the environment (do good).
From my book: The solution begins with co-
