Why business can be good at solving social problems
Classical thinking might propose that capitalism and business are the sources of society's big problems.
Business is the enemy because they created the problems of pollution and economic inequality right?
While there may be bad actors and problems associated with this system, Harvard Professor Michael
Porter suggests business may also be the solution.
In his 2013 global TED talk, Porter argues the efficiency of a business in the free market can
circumnavigate the issues, complexity and bureaucracy seen in government solutions. Business in the
21st century does not profit from causing or exacerbating social problems. Efficient shipping routes and
vehicles reduce emissions and pollution, saving companies money. Maintaining a safe and healthy
workplace free of occupational hazards will reduce accidents and promote productive work.
Relying on tax revenue and donations limit scalability of government NGOs and private charities. The
problems aren’t being solved due to lack of resources. Increasing revenue through coercion is not
popular or sustainable. The size and scope of many problems is only growing.
Porter states that since businesses create goods, resources and profits, tapping into those profits is the
answer when he says; “But that profit is the magic. Why? Because that profit allows whatever solution
we've created to be infinitely scalable. Because if we can make a profit, we can do it for 10, 100, a
million, 100 million, a billion. The solution becomes self-sustaining. That's what business does when it
makes a profit.”
Business is great for spreading wealth through innovations and creating the means for trading or
sharing resources as efficiently as possible. Business facilitates the incentive to collaborate and talk
with other people, working with others may be the best way to break down differences and create and
share wealth with one another.
- Paul ManesBusiness is the enemy because they created the problems of pollution and economic inequality right?
While there may be bad actors and problems associated with this system, Harvard Professor Michael
Porter suggests business may also be the solution.
In his 2013 global TED talk, Porter argues the efficiency of a business in the free market can
circumnavigate the issues, complexity and bureaucracy seen in government solutions. Business in the
21st century does not profit from causing or exacerbating social problems. Efficient shipping routes and
vehicles reduce emissions and pollution, saving companies money. Maintaining a safe and healthy
workplace free of occupational hazards will reduce accidents and promote productive work.
Relying on tax revenue and donations limit scalability of government NGOs and private charities. The
problems aren’t being solved due to lack of resources. Increasing revenue through coercion is not
popular or sustainable. The size and scope of many problems is only growing.
Porter states that since businesses create goods, resources and profits, tapping into those profits is the
answer when he says; “But that profit is the magic. Why? Because that profit allows whatever solution
we've created to be infinitely scalable. Because if we can make a profit, we can do it for 10, 100, a
million, 100 million, a billion. The solution becomes self-sustaining. That's what business does when it
makes a profit.”
Business is great for spreading wealth through innovations and creating the means for trading or
sharing resources as efficiently as possible. Business facilitates the incentive to collaborate and talk
with other people, working with others may be the best way to break down differences and create and
share wealth with one another.
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