Creating Shared Value - explained

Michael Porter has developed an excellent HBR video titled rethinking capitalism and creating shared value theory.

Creating shared value involves reconceiving the intersection between society and corporate performance. However, the recognition of the transformative power of shared value is still in its infancy. It will require leaders and managers to develop new skills and knowledge, such as a far deeper appreciation of societal needs, a greater understanding of the true bases of company productivity, and the ability to collaborate across profit and non-profit boundaries. And government must learn how to regulate in ways that enable shared value rather than work against it.

The purpose of the corporation must be redefined as moving beyond profit maximisation to creating shared value. This will drive the next wave of innovation and productivity growth in the global economy. It will also reshape capitalism and its relationship to society. The time is now for a new conception of capitalism; to meet society's large and growing needs, propelled by active customers, employees, and a new generation of young people who are asking business to step up.

I have included a useful link to this important business topic.