Capitalism Conversation Essay

2605 words - 11 pages

Capitalism
ADI IGNATIUS: Now, your article is meant to fix a problem. What is the problem?
MICHAEL PORTER: Well, the problem is I think we've gotten into a very vicious cycle in thinking about the relationship between business and society. And really, the purpose of capitalism, and the benefits of the capitalist system to society, and to meeting society's needs-- needs like improving people's lives, and improving the health of communities. We've gotten into a cycle where, I think, business has evolved and thinking about business management has evolved, in a direction that we've narrowed the scope of how you create economic value. And increasingly, companies are being perceived as ...view middle of the document...

That was enough. That was sufficient. So what was good for business was axiomatically good for society.
But I think-- as we've seen the effect of business practices on things like health and nutrition and the mortgage crisis-- there's example after example where, actually it's much more complicated than that. And yes, profit is not inconsistent with society's needs. But if you think about creating economic value in a narrow way, if you don't understand the broader and more subtle and longer-term influences on the ultimate sustainability of affirmed success, you can get into a situation where that profit really does come at the expense of society.
And I think there's a backlash of society saying, wait a minute. We don't like this profit. All these companies right now, as you know, are reporting increasing profits, but there's no jobs. The communities are saying, gee, it's great that XYZ Corporation is making more money, but what's in that for us? We can see the layoffs. And we can see our local suppliers who have been cut off and have to go out of business. We can see all this development and pollution and strain on resources. And we understand the profits are good, and somehow that we need capitalism. But yet there's this increasing tension between these, ultimately, partners who actually are mutually dependent on each other.
ADI IGNATIUS: Now, the term you use is creating shared value, so talk a little about how that would work, if it were.
MICHAEL PORTER: Yes. The basic premise of this article is that we once thought if business just increases its profit, what's good for business is then good for society. I think what this article tries to say is, we need to kind of think differently. What's good for society is actually good for business. And that sounds like a play on words, but it's really quite a profound difference in perspective.
The concept of shared value says that, actually, creating societal benefit is really a powerful way to create economic value for the firm. And that we've missed, by and large, many of these opportunities to create profit-- let's call it, the right way-- profit that actually comes from meeting fundamental, human, societal needs. The most obvious example of that would be the environment. We used to think that being environmentally friendly was a good thing to do, that if you were a good person, in a good company, and you were being responsible, that you'd worry about the environment. Well, we have companies now that are understanding that if they think about the environment, they actually save gobs of money-- by reducing energy cost, and minimizing unnecessary logistics that they somehow convinced themselves was a good idea in some theoretical view of how to globalize.
We're seeing all kinds of examples that, by creating products that are actually dealing-- not just with contrived needs or trying to force products onto the customer-- but if we create products that are actually good for the customer--...

Other Papers Like Capitalism Conversation

Metaphor Use Essay

1749 words - 7 pages ENGL124 Literature Analysis Nov.11 2014 The Reluctant Fundamentalist is a novel written by Mohsin Hamid, set in the year following 9/11, constructed through a conversation between a Pakistani named Changez and an unnamed American in a café in Lahore.. The Reluctant Fundamentalist uses a variety of narrative strategies that contribute to the novel’s atmospheric world. This essay is going to focus on the metaphorical and symbolic

Marx in Modern Age Essay

1797 words - 8 pages Ryan McGinley Professor Guista English 101 Final Essay The New Generation Proletariat For decades, the United States of America and Iran have participated in a high stakes game of “Red Light, Green Light”. Recently, the tension between the two countries, as well as other western nations, has been brought to the forefront of global conversation. This heightened awareness of the aforementioned tension, is largely due to Iran’s continued

To What Extent Did Peaceful Coexistence Ease Cold War Tension Between Us and Ussr 1953- 1961?

1245 words - 5 pages 30% annually on weapons and the military. The state of the USSR internally and the rising death levels threatened it as a collective nation. Therefore, it is possible to argue that peaceful coexistence transformed the nature of the cold war, from one of both superpowers focusing on the ideological battle where they were trying to impose their ideas of capitalism and communism to a more national focus within their nations. The fact that they can

Marxist Aproach of International Relations

2580 words - 11 pages main substitute to the mainstream realist and open-minded customs.” He asserts, “…where realism and liberalism took the national system for granted, Marxism open both a diverse description for universal encounter and an outline for basically changing the existing international order.” (Walt, 1998) The conceptual origin for orthodox Marxist theory “…saw capitalism as the crucial root of global conflict. Capitalist countries battled each other as a

The World Is Curved

1775 words - 8 pages financial dealing in overseas markets such as China and a new form of capitalism where the government has least influence on the economic policies. I feel the purpose David M. Smick has in writing this book is primarily his keen interest in the situations that exists, his undeniable understanding of the economy and financial markets and his desire for the common man to get a grip on the circumstances, what caused it and where we might be heading

Research Methods

1225 words - 5 pages – possible a new hypothesis might emerge as|Time-consuming & costly which could affect number in sample – affecting | |conversation develops naturally (M. DeVault ’91 = allowed respondents to |representativeness. | |talk freely around 1 question i.e. housework to do with food: cooking, | | |shopping, cleaning

Free Market System

2153 words - 9 pages ECONOMICS FOR BUSINESS AND MANAGEMENT BC115008S SID: 1118562 Q1:”People of the same trade seldom meet together even for merriment and diversion, but the conversation ends in a conspiracy against the public or in some contrivance to raise prices” (Adam Smith, 1776, Book 10, Ch. VIII). Often, as Adam Smith noted above, the marketplace is influenced by the growth of monopolies, mergers, and cartel-type activities which often use their

Steinbeck

2484 words - 10 pages . That’s the monster” (Steinbeck 33). His negative view on democracy and capitalism made many people question his interests and involvement in communism. Having an outspokenly communist wife was not helping, and during the time period of Marxism, which was when The Grapes of Wrath were published, the novel was rather scandalous (Wilson 529). John Steinbeck clearly expresses him philosophical ideals of capitalism and democracy through the helpless

Sports Drug Abuse

1675 words - 7 pages steroids, while 1.8% and 1.6% for the tenth and eighth graders respectively. Youths can easily be influenced into using steroids from peer pressure or the need to excel in their sport. "I wish I had never taken steroids. It was foolish. I can't say enough how sorry I am," McGwire said, breaking down three times during his conversation with USA TODAY (Jan, 2010). History Sports have been around for thousands of years, in which, the goal is to win

Conservatism

4543 words - 19 pages it. 13) Pragmatism * Pragmatism – pragmatists believe that philosophy should take the methods and insights of modern science and society into account before implementing radical policy. * Conservatives are, above all, pragmatists. * Oakeshott – particularly advocated a pragmatic approach. He asserted that politics should be ‘a conversation not an argument’. He meant that political action should never be the result of conflict over

The Food Movement, Rising of Michael Pollan

4996 words - 20 pages to speed their growth and allow them to withstand the filthy and stressful conditions in which they live. In the wake of these food safety scandals, the conversation about food politics that briefly flourished in the 1970s was picked up again in a series of books, articles, and movies about the consequences of industrial food production.Beginning in 2001 with the publication of Eric Schlosser’s Fast Food Nation, a surprise best-seller, and

Related Essays

Power Relations In Society Essay

4166 words - 17 pages parties’ empowering. In Japan’s shift of social agenda in this couple of decade shows society developing through capitalism and also suggests possible collapse of balanced society mechanism. This reason can be thought as failure of information transparency. Corporation’s market interest seeking is encouraged in neoliberal agenda, but this also unconcern other party’s interests and conversation. Therefore, in neoliberalism agenda

Capitalism For The Long Term Essay

5045 words - 21 pages deficiencies in capitalism itself—just in that particular variant. By rebuilding capitalism for the long term, we can make it stronger, more resilient, more equitable, and better able to deliver the sustainable growth the world needs. The three imperatives outlined above can be a start along this path and, I hope, a way to launch the conversation; others will have their own ideas to add. The kind of deep-seated, systemic changes I’m calling for can be

The Decline Of The West Essay

1107 words - 5 pages The Decline of The West Short story by: Hanif Kureishi The Decline of the West is a short story written by the English, half Pakistani writer Hanif Kureishi in 2010. The main theme in the short story is the capitalism and how material we have become in the West in the year of 2010 and how we strive to gain material comfort ahead of true happiness and greater meaning in life. The short story’s main character is a forty-five year old man

Mba Essay

677 words - 3 pages What Social Impact Do I Expect from My Career? No matter where we turn, our daily lives are immersed in business and capitalism. We each see and feel the impacts of business decisions made by both large corporate leaders and small business owners. During the past ten years, some companies led the precedent for ethical leadership while others have created dishonorable reputations. Both cases are widely felt by consumers nationwide. Business