Kramer and Porter on Corporate Social Responsiblity

Michael Porter and Mark Kramer have arguably produced the most provocative, paradigm-shifting perspectives on the intersection of philanthropy and business of the past decade. Kramer (who founded the Center for Effective Philanthropy and currently heads FSG Social Impact Advisors ) is also the person we can expect to forego sleep producing thought pieces that consistently bring a rational, yet provocative, slant to social change issues as they emerge.

That's certainly the case for the duo's newest article in HBR, "Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility." These guys persuasively argue that corporations miss the boat by thinking, as Milton Friedman suggested, that business strategy and corporate responsiblity are naturally opposing forces:

"The fact is, prevailing approaches to CSR (corporate social responsiblity) are so fragmented and disconnected from business and strategy as to obscure many of the greatest opportunities for companies to benefit society. If, instead, corporations were to analyze their prospects for social responsiblity using the same frameworks that guide their core business choices, they would discover that CSR can be much more than a cost, a constraint, or a charitable deed--it can be a source of opportunity, innovation, and competitive advantage."

Do yourself a favor and check this article out, as well as other pieces by these guys, if you haven't already. Their perspectives are also supported by new research from McKinsie, in which eighty-four percent of the executives from around the world agreed that their companies should pursue not only shareholder value but also broader contributions to the public good.

Susan Herr