Michael Porter is probably the most cited and esteemed philosopher of business and economics.  My BU MBA classmates thought of him like a rockstar, and his accolade is known to anyone who has ever read books on business theory.  Recently, Porter has been speaking out on the need to rethink the wedge between business and society that people perceive:

“Increasingly companies are being perceived as creating profits at the expense of the community… We need to think differently: what’s good for society is actually good for business.”

In the recently-published paper, Rethinking Capitalism, Professor Porter recommended “creating shared value” for both businesses and society.

This Youtube video offers specific examples of shared value, such as fair trade, corporate social responsibility, and expansion of value.  He also addresses the rejection of corporate social responsibility in a way that links personal responsibility to the responsibility of shareholders.

“By actually creating products that are not just dealing with contrived needs or trying to force products onto the customer… If we create products that are actually ‘good’ for the customer – nutritionally good, environmentally good, help them save, help them raise their family in a better way – actually that’s the right way to make economic profit.”