Michael Porter: Why business can be good at solving social problems

The world is facing numerous social problems like poor nutrition, access to water, climate change, deforestation, healthcare, and pollution. The speaker questions why these problems are challenging to address.

The speaker discusses the role of business in addressing social challenges and highlights the perception of business as a problem rather than a solution. He emphasizes the need to rethink the approach to solving societal problems.

Despite efforts by NGOs, philanthropy, and nonprofit organizations, there is a lack of significant progress in addressing social issues at scale. The speaker highlights the resource scarcity as a major hindrance to making a large-scale impact.

Businesses are identified as the primary creators of wealth and resources through profit generation. The speaker emphasizes the potential of business to create resources for addressing societal challenges.

The concept of shared value, where businesses create social value while generating profit, is discussed. The speaker advocates for a higher form of capitalism that focuses on meeting important social needs through business opportunities.

Collaboration between businesses and governments is highlighted as essential for addressing social problems effectively. The importance of governments enabling shared value initiatives in business is emphasized.

The speaker encourages businesses to see themselves differently and embrace the idea of creating shared value. He believes that by changing the perspective of businesses, significant positive changes can be made in the world.