Porter, M. (2013, January). Michael Porter: Why business
can be good at solving social problems. Retrieved from: https://www.ted.com/talks/michael_porter_why_business_can_be_good_at_solving_social_problems
For my
review, I decided to review a Ted talk.
Since whatever we reviewed had to relate to our major while also
relating to problem solving or creativity, I chose to review a talk called,
“Why business can be good at solving social problems”, given by Michael Porter,
since I am an accounting major. Michael
Porter is a professor at Harvard who has written ‘the books’ on modern
competitive strategy for business. In
“Why business can be good at solving social problems”, Porter discusses the
stereotypical gap that is assumed to be between the world of business and
solving social problems. However, he
proposes that businesses are not the problem, but the solution. His audience is intended to be those in the
business world, but also is the public in general. Porter’s overall purpose for the talk is to
inform the audience that the stereotype people have of business is false, and
instead offers solutions to jumpstart new thinking and implementing his given
solutions.
In the
past, the stereotypical view that the average person has of the world of
business might bring up images of large office buildings, factories, and of
course, making money. The ultimate goal
of a business is to make money. Porter
acknowledges the fact that business is tied to social problems because it is
widely assumed that businesses are the main cause of social problems. For
example, some of these problems include pollution, climate change, and deforestation,
and people automatically point the finger at businesses. Other social problems could include poor
world nutrition, limited access to water, and not enough health care. Unlike in the past, awareness of these
problems today is high. Yet, Porter
poses the question, “Why are we having so much of a problem dealing with these
social problems?” So far, our
‘solutions’ have included NGO’s, government help, and philanthropy. Porter agrees that these things do help, but
not on a large enough scale. There
simply is not enough money and resources to fix all social problems. However, what is one thing that does in fact have money and resources?
Business. Resources are found in
business because business creates wealth, which in turn creates a profit, which
helps businesses make the resources that they do. Porter states, “The conventional wisdom is
that there is a trade-off between social performance and economic performance”,
but this doesn’t have to be the case.
Businesses can profit from solving social problems. For example, reducing pollution and emissions
generates profit because it saves money, making businesses more productive and
efficient. Another example is the fact
that having a safe work environment is actually a good thing because accidents
can be expensive. The solutions that
Porter suggests will work in the long-run.
He suggests that in order for business to help solve social problems,
businesses need to change the way they look at themselves and change the way
that others see business. Without these
stereotypes, businesses could help change the world.
Porter
accomplished his goal of his talk. He was
vague at times, but this was the best approach when introducing a new way of thinking. Just implementing his idea in the brains of
the audience accomplishes something, which was exactly what he was trying to
do. The new ways of societal thinking
suggested in the talk could very well have an impact on the world. If people stopped labeling and stereotyping
so easily and actually took a moment to analyze things as they are, the world
could be a different and better place. Porter
did not leave any information out of the talk since he was just introducing a
basic idea. He could have gone more in
depth on how the people could help or make a difference by themselves, but then
that might take away from his main points of the talk.
As I
said earlier, I chose to review this talk because it relates to business, and I
am a business major. The fact that it
was called, “Why business can be good at solving social problems” stuck out to
me. When I enter the work force, I
really do want to make a positive impact on the lives of others. I love helping people. The reinforcing idea that business can make
the world a better place is comforting to me because I feel as if I am on track
to do something worthwhile in life. In
my opinion, if you go throughout life and never positively affect another
individual’s life, you have not truly lived.
Michael
Porter’s lecture on how business can solve social problems introduces new ways
of societal thinking. It reinforces the
fact that people need to stop stereotyping business as harmful and instead view
business as the solution to world problems.
Business has the money to produce resources, and then to pass those
resources on to those in need. Businesses
need to change the way they look at themselves and change the way that others
see business. With everyone working
together, the world could truly be a better place.
