Driven to Profitability: Are Businesses Profiting at the Expense of Society?
By Gail Whitaker, DM, Director of Business and Management Graduate Programs
On February 14, 2013, Dr. Ingo Böbel spoke as part of the CTU Distinguished Lecturer Series. A published author and scholar, Dr. Böbel has had a profound impact on industrial organization research and shared his insight into the economic theory of creating shared value, also known as CSV.
Here are a few of the key takeaways from his lecture:
Creating Shared Value is not a new concept.
Although interest in CSV is a growing topic in many business conversations today, the idea of creating shared value can be traced back to early economic writings that started with Adam Smith in 1776. Smith had a particular interest in explaining how wealth is created and published his theories in a book Böbel highly recommends students read, The Wealth of Nations.
Sustainable wealth is created when business focus on improving profitability and society.
Too often, businesses prosper at the expense of society. There is a tremendous gap between the success of business and the success of the communities the business serves. Businesses must expand their purpose to not only include profitability, but social value. Economist Milton Friedman writes about this in his doctrine published in the New York Times, The Social Responsibility Of Business Is to Increase Its Profits.
Creating shared value tackles the business equation and the social equation – simultaneously.
Businesses have attempted to address social issues through philanthropic initiatives dubbed “corporate social responsibility,” or CSR. While it’s a step in the right direction, CSR is a risk management approach that arose in reaction to negative press. Think back to the Exxon oil spill or accusations that Nike employed child labor. CSV, on the other hand, is a proactive economic approach where businesses make radical changes – in development, in distribution, in pricing, etc. – to create a new business ecosystem that better serves society.
Böbel provided a wealth of knowledge and insight into the idea of CSV. You can listen to the full webinar with accompanying slide deck here.
To learn more about Ingo Böbel and read more on creating shared value visit:
• Böbel’s personal website
Be sure to join us for our next Distinguished Lecturer presentation on Thursday, March 28 by Ken Vance on The Healthcare Transformation: Skills to navigate the changes. Register here.
Gail Whitaker, DM, is the Director of Business and Management Graduate Programs at Colorado Technical University. She has over 25 years of management training and is committed to helping students achieve their goals through education. Watch Dr. Whitaker’s CTU Story to learn more.
Stay in the know! Subscribe to CTU’s blog and receive fresh updates directly to your inbox. Join us!
Terms and Conditions
By providing your mobile number, you agree to receive text messages from Colorado Tech via its mobile text message provider. You may opt out of receiving messages by texting the word STOP to 94576, or simply reply with the word STOP to any text message you receive from Colorado Tech.
While CEC or its mobile text message provider will not charge end users for receiving/responding to promotional messages, depending on the terms of your mobile phone plan, you may incur a cost from your mobile service carrier to receive and respond to any promotional text messages (standard messaging and data rates/fees and other charges may apply). Charges will appear on your mobile phone bill or will be deducted from pre-paid amounts. Current participating/supported carriers are: Alltel, AT&T, Boost, Cellcom, Cellular One, Cellular South, Cincinnati Bell, Cricket, Element Wireless, Golden State Cellular, iWireless, Metro PCS, Nextel, nTelos, Plateau Wireless, Sprint, T-Mobile, US Cellular, Verizon Wireless, Viaero Wireless, Virgin, and more.×