An Evaluation Of A Company 's Stakeholder Concept Of The Social Agenda And A Business Agenda

1880 Words May 24th, 2016 8 Pages
Consistent with Freeman’s stakeholder concept, CSV recognizes that capitalism is where all wealth is created: no wealth is created by government or nongovernmental organizations. When business makes a profit, however, magic happens (Porter, 2011). Because companies are different; not every company in every situation in every market for every aspect of their business will create value, but they can expand their thinking, stretch their markets and differentiate themselves in completely new ways and operate their value chains in different ways (Porter & Kramer, 2011).
For instance, the old style mindset suggested that being environmentally responsible was expensive; that there is a tradeoff between social agenda and a business agenda (Biswas et al., 2011; Porter & Kramer, 2011). The literature is now pointing to increasing evidence that companies can save money by saving energy and using resources better (Biswas, et al., 2014; Spitzeck & Chapman, 2012). Contrary to Carroll’s CRS model, CSV is not about philanthropy but doing business in a smart way (Porter & Kramer, 2011). The motivation to explore less obvious opportunities is to have executives begin to think about how companies can impact issues that have been traditionally described as social issues (Michelini & Fiorentino, 2012).
Although business has been practicing this concept all along, companies have been stuck in a narrow notion about how to compete, how to serve customers well, and how to operate a supply…
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