MGMT 1040 Lecture Notes - Lecture 11: Creating Shared Value, Johnson & Johnson, Walmart
15 Dec 2017
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Document Summary
In recent years business has been criticized as a major cause of social, environmental, and economic problems. Companies are widely thought to be prospering at the expense of their communities. Trust in business has fallen to new lows, leading government officials to set policies that undermine competitiveness and sap economic growth. A big part of the problem lies with companies themselves, which remain trapped in an outdated, narrow approach to value creation. Focused on optimizing short-term financial performance, they overlook the greatest unmet needs in the market as well as broader influences on their long- term success. It doesn"t have to be this way, say porter, of harvard business school, and kramer, the managing director of the social impact advisory firm fsg. Companies could bring business and society back together if they redefined their purpose as creating shared value generating economic value in a way that also produces value for society by addressing its challenges.
