The present review dwelled upon the article by Porter and Kramer and entitled “The big idea: Creating shared value.” The authors consider the idea of shared value in a capitalistic world. The authors state that capitalism (as it is now) is an inadequate system for contemporary society. The authors provide their way to improve the global economic system. The article is quite comprehensive and contains particular examples of successfully implemented strategies. Though the authors could have been more precise, the article can be regarded as effective as it provides a brief account of the concept of shared value.
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It is necessary to note that people have criticized capitalism as an economic system due to its negative impact on the development of society. Researchers are trying to come up with tools aimed at developing a society where people’s quality of life is high, and resources are distributed equally. Therefore, the article on this issue could be regarded as effective when it includes a well-developed strategy with specific steps to undertake. The article should also contain certain figures to persuade the reader that the strategy is grounded and has been implemented.
Porter and Kramer (2011) stress that capitalism cannot be responsible for the wrongs of society. The authors also note that corporations have become a symbol of the capitalistic world, and it is believed that corporations are institutions that deteriorate the well-being of society as they are concerned with their profits. At the same time, corporations are now revealing their readiness to be socially responsible. However, the author note that it is not enough as corporations, as well as governments and NGOs, have to develop shared value. Porter and Kramer (2011) believe it is possible as corporations in developed are bound to be socially responsible.
Otherwise, their products will sell as people wait for something more than a good price or high quality. The authors also provide a number of examples when “capitalism begins to work in poorer communities, new opportunities for economic development and social progress increase exponentially” (Porter & Kramer, 2011, p. 68). Thus, according to the author, corporations invest in the development of local communities and get more profit through helping local people work more efficiently and earn more (Porter & Kramer, 2011).
As has been mentioned above, the article is quite effective as it provides insights into the idea of shared value and contains particular examples of successful implementation of the strategy suggested. The authors mention all stakeholders involved and state that shared value can be achieved. The article includes certain steps that have to be undertaken to develop shared value. There were illustrations of certain cases when the shared value was created in such countries as Brazil, Nigeria, Ghana, and India.
Nonetheless, apart from the strengths mentioned above, the article also has some downsides. In the first place, it is not enough to outline separate steps to persuade people that the strategy is effective. The article should have a detailed account of the way the strategy should be developed and carried out. The authors mention that governments, corporations, NGOs have to participate in the process, but they only touch upon this topic without going into detail. The article includes an insufficient amount of specific figures and data. The authors mention that some farmers or some groups of people managed to increase their profits, but such data are not sufficient for persuading people that the strategy really works or will work in different settings.
Living in a developed country where people demand social responsibility and corporations have to follow these rules, I still do not feel that shared value can be achieved. It is still accepted that corporations have to invest money into the development of some social projects to improve their image and attract more customers. I do not feel corporations really want to invest in the development of communities or even into the development of more advanced technologies.
Irrespective of shortcomings of the article, it is still effective as it raises awareness and invites more people into the ongoing debate on the matter. Admittedly, further research is needed but the article highlights major concepts, stakeholders and benefits of creating shared value.
In conclusion, it is possible to note that the article is effective as it introduces the concept of shared value. The authors claim that a new type of capitalism based on this principle can help the society develop. Of course, the topic is really important for the contemporary society and it needs further research. It is necessary to trace companies which follow the principles of shared value and evaluate effectiveness of their strategies for both companies and communities. These studies have to include specific data on profits as this can persuade managers that the strategies can be applied in other settings as well. Clearly, shared value has to be created as the existing form of capitalism leads the human society in a wrong direction. Corporations should not be regulated excessively but they have to operate in a way that positively affects development of communities.
Porter, M.E. & Kramer, M.R. (2011). The big idea: Creating shared value. Harvard Business Review, 89(1-2), 62-77. Web.