Sustainability Strategy Transforms the Enterprise
Capitalism is a dynamic system for creating economic value. It continues to evolve as the world changes. What once were considered externalities in the 20th century (side effects or consequences of industrial or commercial activities that affect other parties without being reflected in the cost of the goods or services involved) are being reconsidered in the 21st century. The focus now is on "shared value"--a new conceptualization defined by Michael Porter as the policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the social, environmental, or economic conditions in the communities in which it operates or is emerging. Creating shared value, far from being corporate philanthropy or social obligation, is now becoming understood as a key strategic pathway for revenue growth and durable profitability in the 21st century.