Article Review of Kramer and Porter - Book Report/Review Example

Author and title The article “Creating Shared Value: How to reinvent capitalism—and unleash a new wave of innovation and growth,” is written by Michael E. Porter and Mark R. Kramer and published in the “Harvard Business Review” in January-February 2011 issue. A very brief overview of the article, its purpose, & my reaction/evaluation Corporations did business but stayed away from interacting from those who supported the business, except their vendors and shareholders. They neglected the source from where their coffers were filled and social responsibility was not their issue at all.

Conducting business was their concern. The purpose of the article, as rightly pointed out in the title, is how to reinvent capitalism. This is a brilliantly written article, which throws light on the contemporary narrowed capitalistic conception that has resulted in all sorts of societal problems. It calls for a new vision, forward looking approach and dynamic thinking about social responsibility and to discover new significance and connotation of the word profit. Background Information: Context of the article and the criteria for judging the article The passive and neutral approach of the corporations towards the society has resulted in the reduced trust that people repose in business.

Flashy advertisements can contribute to the growth of the business for some time, but to build permanent goodwill corporations need to remain connected to the people and take care of their welfare. The business houses must address to the environmental, societal and economic problems. Business houses govern the society without being elected through popular vote and their interference in the life of the common man is rewarding activity for them. Whenever customer buys something from the market, he adds to the prosperity of the corporations.

Welfare of the society demands that corporations need to be responsive to social needs by direct involvement. My reactions about the merit of the article is positive as the authors have succeeded in conveying the message as to how corporate responsibility programs enhance the image of the corporations, ipso facto, they are good marketing tools to increase popularity and they indirectly contribute to enhanced production of goods. Summary: Discuss the main points of the article, quoting & paraphrasing key ideas from the author The authors write, “Capitalism is under siege.

In recent years business increasingly has been viewed as a major cause of social, environmental, and economic problems. Companies are widely perceived to be prospering at the expense of the broader community… companies must take the lead in bringing business and society back together” (p.64) “The solution lies in the principle of shared value, which involves creating economic value in a way that also creates value for society by addressing its needs and challenges” (p.64) “Shared value is not social responsibility, philanthropy, or even sustainability, but a new way to achieve economic success” (p.64) According to Kramer and Porter, the wealth of a company and its competitiveness are closely interrelated.

So to say, they are the alternative beats of the same heart. A prosperous corporation amidst poor social surroundings is a blot on the society. Adequate and sustained demand can arise through the well-being of the community. Though the social responsibi