regional economic and social development: the new learning files/20131029... · 2013-10-29 · 10...

This presentation draws on ideas from Professor Porter’s articles and books, in particular, The Competitive Advantage of Nations (The Free Press, 1990), “Building the Microeconomic

Foundations of Competitiveness,” in The Global Competitiveness Report (World Economic Forum), “Clusters and the New Competitive Agenda for Companies and Governments” in On

Competition (Harvard Business School Press, 2008), “Creating Shared Value” (Harvard Business Review, Jan 2011), the Social Progress Index Report (Social Progress Imperative)

and ongoing related research. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means - electronic, mechanical,

photocopying, recording, or otherwise - without the permission of Michael E. Porter. For further materials, see the website of the Institute for Strategy and Competitiveness

(www.isc.hbs.edu), FSG (www.fsg.org) and the Social Progress Imperative (www.socialprogressimperative.org).

Professor Michael E. Porter Harvard Business School

Expogestión Oriente 2013

Bucaramanga, Colombia October 29, 2013

Regional Economic and Social Development:

The New Learning

http://www.isc.hbs.edu/







http://www.fsg.org/

http://www.fsg.org/

http://www.fsg.org/

http://www.fsg.org/

http://www.fsg.org/

http://www.socialprogressimperative.org/





Copyright 2013 © Professor Michael E. Porter 2 20131029—Bucaramanga Regional Economic and Social Development

The Dual Challenges of Development

Social

Development

• There is a powerful connection between economic and social

development, that goes in both directions

• Successful development requires improving the economic and social context

simultaneously

Economic

Development


1. Strategy for Economic Development

2. Enhancing Social Development

3. Business as a Driver of Social and Economic

Development


The New Learning


Prosperity Performance Latin America and the Caribbean

Source: EIU (2012), author’s calculations

Antigua & Barbuda

Argentina

Bahamas

Belize

Bolivia

Brazil

Chile

Colombia Costa Rica Cuba

Dominica

Dominican Republic

Ecuador

El Salvador

Grenada

Guatemala

Guyana

Haiti

Honduras

Jamaica

Mexico

Nicaragua

Panama

Paraguay

Peru

St Kitts & Nevis

St Lucia St Vincent & The Grenadines

Suriname

Trinidad and Tobago

Uruguay

Venezuela

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0%

PPP-Adjusted GDP per Capita, 2012 ($USD)

Growth in Real GDP per Capita (PPP-adjusted), CAGR, 2002-2012

Average: $10,796

Average: 4.67%


• Competitiveness depends on the long-run productivity of a location as a

place to do business

- The productivity of existing firms and workers

- Ability to achieve high participation of working age citizens in the

workforce

• Competitiveness is not:

- Low wages

- Jobs per se

- A weak currency

A nation or region is competitive to the extent that firms operating there are able

to compete successfully in the regional and global economy while supporting

high and rising wages and living standards for the average citizen

Competitiveness and Economic Development

• Successful economic development only occurs by improving competitiveness


• Endowments, including natural resources, geographical location, population, and land area, create a

foundation for prosperity, but true prosperity arises from productivity in the use of endowments

Endowments

What Determines Competitiveness?


• Macroeconomic competitiveness sets the economy-wide context for productivity to emerge, but

is not sufficient to ensure productivity

• Endowments, including natural resources, geographical location, population, and land area,

create a foundation for prosperity, but true prosperity arises from productivity in the use of

endowments

Endowments

Macroeconomic Competitiveness

Sound Monetary

and Fiscal Policies



• Productivity ultimately depends on improving the microeconomic capability of the economy and

the sophistication of local competition revealed at the level of firms, clusters, and regions

• Macroeconomic competitiveness sets the economy-wide context for productivity to emerge, but

is not sufficient to ensure productivity

• Endowments, including natural resources, geographical location, population, and land area,

create a foundation for prosperity, but true prosperity arises from productivity in the use of

endowments

Endowments


Sound Monetary

and Fiscal Policies

Microeconomic Competitiveness

Quality of the

Business

Environment

Sophistication

of Company

Operations and

Strategy

State of Cluster

Development



Context for Firm Strategy and Rivalry

Related and Supporting Industries

Factor (Input)

Conditions

Demand Conditions

• Sophisticated and demanding local

needs

– e.g., Strict quality, safety, and

environmental standards

• Many things matter for competitiveness

• Successful economic development is a process of successive upgrading, in which the business environment improves to enable increasingly sophisticated ways of competing

• Local rules, incentives and

competition that encourage

investment and productivity

– e.g. incentives for capital

investments, IP protection, sound

corporate governance standards,

strict competition laws, openness to

foreign competition • Access to high quality business

inputs

– Qualified human resources

– Capital availability

– Physical infrastructure

– Scientific and technological

infrastructure

• Availability and quality of suppliers and

supporting industries

Improving the Quality of the Business Environment

10

Santander's Business Environment: Assessment

+ Growing middle class

+ Close to the Venezuelan border

– Low sophistication of demand

from the regional and local

governments

– Consumer demand not

sophisticated or trend-setting

+ Geographical location

+ Good technology infrastructure

+ Access and quality of tertiary education

+ Supply of advanced degree holders:

notably scientists and engineers

+ Internet use density

+ Administrative infrastructure (paying

taxes, business formation)

– Road and air transportation

– Access to secondary education

– Weak collaboration between the private

sector and universities

– Weak but improving innovation system

– Mismatch in the labor force

– Scarce bilingual population

– Low penetration of financial services

– Limited access to venture capital

+ Variety of clusters in the region

+ Strong institutions for collaboration

– Low quality of suppliers

Based on assessment by the Center for Strategy and

Competitiveness, Uniandes, “Santander Competitivo”

Context for Firm Strategy and Rivalry

Related and Supporting Industries

Factor (Input)

Conditions

Demand Conditions

+ Quality of life

+ High level of competition

– High tax levels

– High level of informality

– Low level of foreign

investment

– Low firm internationalization


Sources: HBS student team research (2003) - Peter Tynan, Chai McConnell, Alexandra West, Jean Hayden

Restaurants

Attractions and Activities

e.g., theme parks, casinos, sports

Airlines, Cruise Ships

Travel Agents Tour Operators

Hotels

Property Services

Maintenance Services

Government Agencies e.g., Australian Tourism

Commission, Great Barrier Reef Authority

Educational Institutions e.g., James Cook University,

Cairns College of TAFE

Industry Groups e.g., Queensland Tourism

Industry Council

Food Suppliers

Public Relations & Market Research

Services

Local Retail, Health Care, and Other Services

Souvenirs, Duty Free

Banks, Foreign

Exchange

Local Transportation

Developing Clusters Tourism in Cairns, Australia

Copyright 2013 © Professor Michael E. Porter 12 ########(presentation date)—File Name Here—v#—August 7, 2014

Clusters

Specialized Physical

Infrastructure

Natural Resource Protection

Science and Technology

Infrastructure

(e.g., centers, university

departments, technology

transfer)

Education and

Workforce Training

Business Attraction

Export Promotion

• Clusters provide a framework for organizing the implementation of many

public policies and public investments directed at economic development

Quality and environmental

standards

Market Information

and Disclosure

Organize Public Policy around Clusters

Copyright 2013 © Professor Michael E. Porter 13 ########(presentation date)—File Name Here—v#—August 7, 2014

• Improving the general business environment is essential, but cluster development is

necessary to attain middle-income levels

• Developing economies should upgrade traditional clusters (including agriculture), never

abandon them

• Existing MNCs in the country should be treated as nodes for cluster development

– The best way to retain companies is for them to be part of a cluster

• Attracting foreign direct investment should focus on existing and emerging clusters, not

generalized appeals to locate in the country

• Free Trade or Export Processing Zones should be organized around clusters, with

governing regulations designed to encourage linkages with the local economy

• A formal process for cluster development is an important component of economic

development

– Private sector led

– Government roles in convening, supporting, and participating

– Seed funding for cluster assessment and the formation of cluster-based IFCs

Clusters in Developing Economies Some Principles


Relationship Among Clusters

Furniture Building

Fixtures,

Equipment &

Services

Fishing &

Fishing

Products

Hospitality

& Tourism Agricultural

Products

Transportation

& Logistics

Plastics

Oil & Gas

Products &

Services

Chemical

Products

Biopharma-

ceuticals

Power

Generation &

Transmission

Aerospace

Vehicles &

Defense

Lighting &

Electrical

Equipment

Financial

Services

Publishing

& Printing

Entertainment

Information

Technology

Communi-

cations

Equipment

Aerospace

Engines

Business

Services

Distribution

Services

Forest

Products

Heavy

Construction

Services

Construction

Materials

Prefabricated

Enclosures

Heavy

Machinery

Sporting,

Recreational &

Children’s

Goods

Automotive

Production

Technology Motor Driven

Products

Metal

Manufacturing

Jewelry &

Precious

Metals

Textiles

Footwear

Processed

Food

Tobacco

Medical

Devices

Analytical

Instruments Education &

Knowledge

Creation

Apparel

Leather &

Related

Products

Note: Clusters with overlapping borders or identical shading have at least 20% overlap (by number of industries) in both directions.


Furniture Building

Fixtures,

Equipment &

Services

Fishing &

Fishing

Products Hospitality

& Tourism Agricultural

Products Transportation

& Logistics

Colombia’s Share of World Exports by Cluster, 2011

Plastics

Oil &

Gas

Chemical

Products

Biopharma-

ceuticals

Power

Generation

Aerospace

Vehicles &

Defense

Lightning &

Electrical

Equipment

Financial

Services

Publishing

& Printing

Information

Tech.

Communi-

cations

Equipment

Business

Services

Distribution

Services

Forest

Products

Heavy

Construction

Services

Construction

Materials

Prefabricated

Enclosures

Apparel

Leather &

Related

Products

Jewelry &

Precious

Metals

Textiles

Footwear

Processed

Food

Tobacco

Medical

Devices

Analytical

Instruments Education &

Knowledge

Creation

Note: Clusters with overlapping borders have at least 20% overlap (by number of industries) in both directions.

Marine

Equipment

Aerospace

Engines

Heavy

Machinery

Sporting

& Recreation

Goods

Automotive

Production

Technology

Motor Driven

Products

Mining & Metal

Manufacturing

Enter-

tainment

> 0.10%

> 0.25%

> 0.50%

World Market Share

Coal &

Briquettes


Geographic Influences on Competitiveness

Regions and Cities

Nation

• Regions are the most important economic unit for competitiveness in larger countries,

especially countries beyond subsistence development


Antioquia

Atlántico

Bogotá D. C.

Caldas

Cesar

Norte de Santander

Risaralda

Santander

Tolima

Valle

$5,000,000

$7,000,000

$9,000,000

$11,000,000

$13,000,000

$15,000,000

$17,000,000

$19,000,000

$21,000,000

1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%

Prosperity Performance Colombian Departments, 2010

GD

P p

er

Cap

ita,

20

10

(P

es

os)

Real Growth Rate of GDP per Capita, 2001-2010 Note: GDP in constant 2005 Colombian Pesos ($); bubble size proportional to department population.

Source: Banco de la República.

Colombia GDP per Capita:

$9,329,881

Colombia Real Growth Rate

of GDP per Capita: 3.09%


Antioquia

Atlántico

Bogotá D. C.

Caldas

Cesar

Norte de Santander

Risaralda

Santander

Tolima

Valle

$5,000,000

$7,000,000

$9,000,000

$11,000,000

$13,000,000

$15,000,000

$17,000,000

$19,000,000

$21,000,000

40 50 60 70 80 90 100 110

Competitiveness Index Performance Colombian Departments, 2010

Competitiveness Index, 2010 Note: GDP in constant 2005 Colombian Pesos ($); bubble size proportional to department population.

Sources: Banco de la República, CEPAL.

Colombia GDP per Capita:

$9,329,881

GD

P p

er

Cap

ita,

20

10

(P

es

os)


• Many essential levers of competitiveness reside at the regional level

• Regions specialize in different sets of clusters

• Regions are a critical unit in competitiveness

• Each region needs its own distinctive strategy and action agenda

– Business environment improvement

– Cluster upgrading

– Improving institutional effectiveness

The Role of Regions in Economic Development



Microeconomic Competitiveness

Sophistication

of Company

Operations and

Strategy

Quality of the

Business

Environment

State of Cluster

Development

Endowments

Human Development

and Effective

Political Institutions

Sound Monetary

and Fiscal Policies

What Determines Competitiveness? The Role of Social Factors





Development


The New Learning


Social Development What is Social Progress?

Social progress is the capacity of a society to meet the

basic human needs of its citizens, establish the

building blocks that allow citizens and communities to

enhance and sustain the quality of their lives, and

create the conditions for all individuals to reach their

full potential


• Economic progress has a positive impact on social progress, but

rising GDP per Capita does not guarantee social progress

• We must measure social progress directly in order to understand

performance and inform improvement

• The Social Progress Index is a new tool to do so

− Separate from economic indicators

− Holistic framework

− Outcomes rather than inputs

− Relevant to all countries

• By separating social and economic progress, we can better

understand overall country performance and how social and

economic performance are linked

Driving Social Development


The Social Progress Index Model

Social Progress Index

Nutrition and Basic Medical Care

Air, Water, and Sanitation

Shelter

Personal Safety

Access to Basic Knowledge

Access to Information and

Communications

Health and Wellness

Ecosystem Sustainability

Personal Rights

Access to Higher Education

Personal Freedom and Choice

Inclusion and Equity of Opportunity

Does a country provide

for its people’s most

essential needs?

Are the building blocks in

place for individuals and

communities to enhance

and sustain wellbeing?

Is there opportunity for

all individuals to reach

their full potential?

Opportunity Foundations of Wellbeing Basic Human Needs


Social Progress Index: 2013 Rankings

1. Sweden

2. United Kingdom

3. Switzerland

4. Canada

5. Germany

6. United States

7. Australia

8. Japan

9. France

10. Spain

11. Korea, Rep.

12. Costa Rica

13. Poland

14. Chile

15. Argentina

16. Israel

17. Bulgaria

18. Brazil

19. United Arab Emirates

20. Turkey

21. Dominican Republic

22. Colombia

23. Thailand

24. Peru

25. Mexico

26. Philippines

27. Paraguay

28. Tunisia

29. Georgia

30. Viet Nam

31. Jordan

32. China

33. Russian Federation

34. Kazakhstan

35. Botswana

36. Sri Lanka

37. Morocco

38. Indonesia

39. South Africa

40. Egypt, Arab Rep.

41. Ghana

42. Bangladesh

43. India

44. Senegal

45. Kenya

46. Rwanda

47. Mozambique

48. Uganda

49. Nigeria

50. Ethiopia


Social Progress Index vs. GDP per Capita

Argentina

Australia

Bangladesh

Botswana

Brazil Bulgaria

Canada

Chile

China

Colombia

Costa Rica

Dominican Republic

Egypt

Ethiopia

France

Georgia

Germany

Ghana

India

Indonesia

Israel

Japan

Jordan

Kazakhstan

Kenya

Mexico

Morocco

Mozambique

Nigeria

Paraguay

Peru Philippines

Poland

Russia

Rwanda

Senegal

South Africa

South Korea Spain

Sri Lanka

Sweden

Switzerland

Thailand

Tunisia

Turkey

Uganda

United Arab Emirates

United Kingdom

United States

Vietnam

30

35

40

45

50

55

60

65

70

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000

So

cia

l P

rog

res

s In

de

x

PPP-Adjusted GDP per Capita, 2011 ($USD)


Colombia’s Social Progress Scorecard Overall Rank 21

*Safety net, tolerance and respect for minorities, women, and disadvantaged

Colombia GDP per capita rank is 27th among

sample of 50 countries

*

Basic Human Needs 38 Foundations of Wellbeing 27 Opportunity 17

Nutrition and Basic Medical Care 28 Access to Basic Knowledge 33 Personal Rights 27

Undernourishment 36 Adult literacy rate 25 Political rights 26

Depth of food deficit 36 Primary school enrollment 41 Freedom of speech 12

Maternal mortality rate 33 Secondary school enrollment 24 Freedom of assembly/association 23

Stillbirth rate 20 Women's mean years in school 34 Private property rights 18

Child mortality rate 27 Women's property rights 19

Prevalence of tuberculosis 22

Air, Water and Sanitation 31 Access to Information and Communications 30 Personal Freedom and Choice 17 31

Indoor air pollution attributable deaths 31 Mobile telephone subscriptions 31 Basic religious freedoms 26

Outdoor air pollution attributable deaths 15 Internet users 24 Contraceptive prevalence rate 10

Access to piped water 21 Fixed broadband subscriptions 25 Access to childcare 17

Rural/urban access to improved water source 41 Press Freedom Index 31 Freedom over life choices 17

Access to improved sanitation facilities 31

Access to wastewater treatment 34

Shelter 25 Health and Wellness 30 Inclusion and Equity of Opportunity 9

Availability of affordable housing 30 Life Expectancy 22 Equity of opportunity for ethnic minorities 1

Access to electricity 25 Obesity 25 Women treated with respect 48

Cancer death rate 16 Community safety net 12

Personal Safety 49 Deaths from cardiovascular disease & diabetes 16 Tolerance of immigrants 15

Homicide rate 47 Deaths from HIV 34 Tolerance for homosexuals 17

Level of violent crime 39 Availability of quality healthcare 31

Perceived criminality 37

Political terror 48

Ecosystem Sustainability 13 Access to Higher Education 23

Ecological footprint of consumption 19 Tertiary school enrollment 23

CO2 emissions per capita 15 Female tertiary enrollment 22

Energy use per $1,000 GDP 18

Water withdrawals per capita 13


Social Progress vs. Government Expenditure (% of GDP) S

oc

ial P

rog

res

s In

de

x

Government Expenditure Source: 2013 Index of Economic Freedom

Government Expenditure (% GDP)

Sweden

United Kingdom

Switzerland Canada

Germany United States

Australia Japan France

Spain

Korea, Rep.

Costa Rica

Poland Chile Argentina

Israel Bulgaria

Brazil

United Arab Emirates

Turkey Colombia

Dominican Republic Thailand Peru

Mexico Philippines Paraguay Tunisia Georgia

Viet Nam Jordan China Russian Federation Kazakhstan Botswana

Sri Lanka Morocco Indonesia

South Africa

Egypt, Arab Rep. Ghana

Bangladesh India Senegal

Kenya

Rwanda Mozambique Uganda

Nigeria Ethiopia

20

25

30

35

40

45

50

55

60

65

70

10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60%


Social Progress vs. Government Expenditure (% of GDP) S

oc

ial P

rog

res

s In

de

x

Government Expenditure Source: 2013 Index of Economic Freedom

Government Expenditure (% GDP)

Costa Rica Argentina

Bulgaria

Brazil

United Arab Emirates Colombia

Dominican Republic

Thailand Peru

Philippines Paraguay

Tunisia Georgia

Viet Nam Jordan China Russian Federation

Kazakhstan Botswana

Sri Lanka Morocco

Indonesia South Africa

Egypt Ghana

Bangladesh

India Senegal

Kenya

Rwanda Mozambique

Uganda

Nigeria

Ethiopia

20

25

30

35

40

45

50

55

60

65

70

10% 15% 20% 25% 30% 35% 40% 45% 50%


The Social Progress Index: Key Findings

• Economic development is necessary but not sufficient as a

measure of national performance

• Just as economic development helps social progress, social

progress can enable sustainable economic development

• Some approaches to economic development are less effective

than others in advancing social progress, and even

counterproductive, and vice versa

• The amount of government spending (as a percent GDP) is an

incomplete explanation for social progress performance


The Social Progress Imperative: Driving to Action

The Social Progress Imperative is not just an Index, but a global

effort designed to catalyze action at the country level. It aims

to form and support National Committees of leaders and

stakeholders in each country, and work jointly with them to

mobilize policy changes and private sector initiatives to

advance social progress.





Development


The New Learning


• Only business can create economic prosperity

• Societies are facing significant social and environmental

challenges

• Business is facing growing scrutiny as the cause or a contributor

to many of these challenges

• Corporate social responsibility efforts are greater than ever, but the

legitimacy of business has fallen

• Government and NGO’s lack sufficient resources and

capabilities to fully meet the challenges alone

We need a new approach

The Role of Business in Society


Philanthropy

• Donations to worthy

social causes

• Volunteering

The Role of Business in Social and Economic Progress Evolving Approaches



Corporate Social

Responsibility

(CSR) Philanthropy


social causes

• Volunteering

• Compliance with

community standards

• Good corporate

citizenship

• “Sustainability”

• Mitigate risk and

harm


Corporate Social

Responsibility

(CSR)

Creating Shared

Value

(CSV)

Philanthropy


social causes

• Volunteering

• Compliance with

community standards

• Good corporate

citizenship

• “Sustainability”

• Mitigate risk and

harm

• Address societal needs

and challenges with a

business model



• Social deficits and environmental impact create economic costs for companies

• Community weaknesses affect company productivity

• Social needs represent the largest market opportunities

Company

Productivity

Workforce

Skills

Worker Safety

Environmental

Improvement

Education

Water Use

Energy

Efficiency

Health

Affordable

Housing

Community

Economic

Development

Social Needs and Economic Value Creation


Levels of Shared Value

I. Meeting social needs through products and underserved

customers

II. Redefining productivity in the value chain

III. Improving the local and regional business environment


Creating Shared Value in Products and Markets Jain Irrigation Systems

• Drip irrigation equipment for small farmers in India and Africa

• Serves more than 4 million farmers worldwide as of 2012

• Reduces water use by over 40%

• Enables higher crop yields that improve food security while raising

farmers’ income

• Jain is now a $820 million company that is rapidly growing


Shared Value in the Value Chain Fibria, Brazil

• Fibria, the world’s leading manufacturer of chemical pulp, utilizes planted

eucalyptus trees rather than harvesting native and old growth forests, and

cultivation methods that incorporate partial native habitat on Fibria land

• The company also encourages small-scale producers near its mills to plant

eucalyptus in conjunction with other crops, assisting them with technical

training and inputs

• Fibria achieves far greater land and water efficiency versus old growth forest

production and traditional plantation methods

• Small scale producers currently contribute 27% of the raw materials utilized in

Fibria mills, improving efficiency

• 4000 households have significantly increased their income


Improving the Business Environment: Upgrading Channels Arca Continental

• Arca Continental is the second largest bottling company in Latin America,

and one of the largest Coca-Cola bottlers in the world

• Arca Continental established a program to train and invest in the micro-

entrepreneur retailers who sell more than 60% of the Company’s products,

including management, sales and marketing and merchandising

• Invests in low energy use coolers and fixture improvements

• Participating retailers register sales increases of 25% or more, with improved

customer satisfaction, leading to similar increases in the sales of Arca’s

products

• Arca Continental recovers its investment in 6 months or less

• Beginning in Mexico, the program is being extended to Argentina and

Ecuador


Creating Shared Value: Deciding Where to Concentrate

Nestlé

Water Rural

Development

Nutrition

• Opportunities to create shared value are inevitably

tied closely to a company’s particular businesses


• Natural, fresh, organic, and freshly prepared foods and

health items with excellent service at premium prices

• Cater to specialized nutritional requirements (gluten

allergies, vegan, etc.)

• Serve educated customers who are passionate about

food and a healthy lifestyle

• Well-lit, inviting supermarket store formats with

appealing displays and extensive prepared foods

sections

• Produce section as “theater”

• Café-style seating areas with wireless internet for

meals and meetings

• Each store carries local produce and has the authority

to contract with the local farmers. Company provides

low-interest loans if needed

• Nutrition information and education provided to

shoppers along with products

• High touch in-store customer service via

knowledgeable, flexible, and highly motivated

personnel

• Flat compensation structure

• Own seafood procurement and processing facilities to

control quality, sustainability and price from the boat to

the counter

• Heavy emphasis on environmental sustainability in all

activities

• Emphasis on supporting community development

Value Proposition Distinctive Activities

• Whole Foods is the most economically successful food retailer in North America

• Successful strategies in the future will embody a significant shared value dimension

Shared Value and Company Strategy Whole Foods Markets


Purpose Based Strategic Positioning

Traditional Positioning New Positioning

• Food and Beverage

Company

• Nutrition, Health and Wellness

Company Nestlé

• Footwear and

Apparel Company • Health and Fitness Company Nike

• Scientific and Laboratory

Instruments Company

• Making the World Healthier,

Cleaner, and Safer

Thermo

Fisher

Scientific

• A clear social purpose opens up new opportunities for growth and profitability, while

motivating and attracting consumers, business partners, employees, shareholders, and

the public


The Purpose of Business

• Our purpose in business is to create shared value for society, not economic

value for its own sake

• Businesses acting as businesses, not as charitable givers, are arguably the

most powerful force for addressing many of the pressing issues facing our

society

• Shared value will give rise to far broader opportunities for economic value

creation

• Shared value thinking will drive the next wave of innovation, productivity, and

economic growth

• A transformation of business practice around shared value will give purpose to

the corporation and represents our best chance to legitimize business again

regional economic and social development: the new learning files/20131029... · 2013-10-29 · 10...

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