Rethinking capitalism
Valuable insights from Michael E. Porter regarding the future of capitalism. He argues that the old profit maximization rule propagated by Milton Friedman 'The social responsibility of business is to increase its profits' is no more valid and calls for a new perspective in order to create what he calls 'shared value': What's good for society is good for business.
Porter does not propose to redistribute the pie, but believes that the concept of shared value will lead to a bigger pie, from which all parties will profit. Creating societal benefits will create economic value.
Notwithstanding that he obviously has been inspired by the work of Peter F. Drucker, I hope that business will listen, rethink their value chain and focus more on the human needs relating to their products. There are obviously important implications for CSR as well.
I look forward to further developments of this worthy initiative.