Daniel Chavez Moran learned from his mother, a great teacher who dedicated her life to helping children combat ignorance and poverty, that the true measure of a man’s success is not what he makes of himself but how he helps others. That is why Daniel Chavez Moran created Fundación Delia Moran A.C. in 2002 to help young children whose day-to-day life is a constant struggle to survive. That is also why he founded the non-profit Vidanta Foundation, with a primary goal of promoting the social sciences and culture of Latin America as well as promoting corporate social responsibility. A recent paper published by the Harvard Business Review explains the impact corporations can have in creating even more economic and social value for the communities they serve. Here are excerpts:
Companies must take the lead in bringing business and society back together. The recognition is there among sophisticated business and thought leaders, and promising elements of a new model are emerging...
The solution lies in the principle of shared value, which involves creating economic value in a way that also creates value for society by addressing its needs and challenges.
...Capitalism is an unparalleled vehicle for meeting human needs, improving efficiency, creating jobs, and building wealth. But a narrow conception of capitalism has prevented business from harnessing its full potential to meet society’s broader challenges. The opportunities have been there all along but have been overlooked. Businesses acting as businesses, not as charitable donors, are the most powerful force for addressing the pressing issues we face. The moment for a new conception of capitalism is now; society’s needs are large and growing, while customers, employees, and a new generation of young people are asking business to step up.
...The concept of shared value, in contrast, recognizes that societal needs, not just conventional economic needs, define markets. It also recognizes that social harms or weaknesses frequently create internal costs for firms—such as wasted energy or raw materials, costly accidents, and the need for remedial training to compensate for inadequacies in education. And addressing societal harms and constraints does not necessarily raise costs for firms, because they can innovate through using new technologies, operating methods, and management approaches—and as a result, increase their productivity and expand their markets.