Difference Between Corporate Social Responsibility And Creating Shared Value By Michael E. Porter And Mark R. Kramer

923 Words Nov 15th, 2016 4 Pages
In the new business era, business should know how to redefine creation of shared value rather than pursuit profit.The market not only needs the economic trends, but also the social needs. If an enterprise wants to achieve a sustainable development and grow, corporations must connect with the society and identify the demand and needed for its consumers. The article “Creating Shared
Value,” was written by Michael E. Porter and Mark R. Kramer. This article intends to define the difference between corporate social responsibility and creating shared value, and redefine capitalism based on authors’ perspective. They believe that creating shared value is not a matter of personal values, nor a "sharing" of the value that enterprises had already created. Shared values seek to expand economic and social values. Based on my perspective, I think that this article provides a new position on how people perceive value creation.
Background information
During the 2008 financial crisis, many people lose trust in business and investors are cautious when they making an investment. Although the majority of corporations engaged in philanthropic and promote social responsibility to regain customers’ confidence, the problem between business and society still exist.Throughout the article, the authors identify the issues between the corporate contribution and the social needs. They also provide specific examples on how businesses create shared value that benefit both parties: the corporations and…

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