How GE Is Changing Business Through Shared Value
Do More Than Give, the new book from authors Leslie R. Crutchfield, John V. Kania, and Mark R. Kramer, outlines how companies such as GE simultaneously improve communities and make a profit. In other words, how they create "shared value," the concept that Kramer coined along with Michael Porter to describe the evolution of capitalism away from shareholder primacy, where profits enrich the few, to stakeholder capitalism, where companies create value for shareholders by enhancing value for broader society at the same time. This new business focus entails analyzing a company's product and markets, recreating its value chain, and amplifying the productivity of the surrounding communities in which it functions.
In this excerpt from their new book, Do More Than Give, authors Leslie R. Crutchfield, John V. Kania, and Mark R. Kramer talk about companies like GE and Unilever that improve the communities they do business in--while making a profit. Using business skills and resources to help solve social problems isn't always philanthropically motivated. Much has been written about doing well by doing good, but companies large and small are increasingly awakening to the idea of creating shared value for society while they create economic value for themselves.
GE (NYSE: GE) is an advanced technology, services and finance company taking on the world’s toughest challenges. Dedicated to innovation in energy, health, transportation and infrastructure, GE operates in more than 100 countries and employs about 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.
Citizenship at GE is more than a program or a set of good intentions - it is a full-time commitment built upon cultural behaviors and actions. These actions are integrated with business strategy and have defined goals, strategies and metrics that make it actionable and accountable.