Economic crises, financial storms, and ecological scandals: today’s capitalism is out of breath and is out of touch with the world’s new challenges. This is why reinventing capitalism is an urgent task. Reinvent it to make it less ruthless, more human, more responsible. This is Michael Porter’s objective. The strategy guru invented the concept of “Shared Value” or how to reconcile profit with redistribution. We go to the Ivory Coast to see how the world’s leading food company, Nestlé, has implemented its Cocoa Plan for the benefit of all. Even more radical than Shared Value are Benefit Corporations, and they’re disrupting the codes of a capitalism which are still focused on the shareholder. Are yesterday’s utopias the inspiration for tomorrow’s business models?
Sustainability at Interface (04:35)
Ray Anderson turned his company's environmental impact around by committing to not producing emissions or waste. At the production site in the Netherlands, the company has nearly reached this goal by using recycled materials and new techniques. Europe CEO Rob Boogaard explains that this mission has transformed the company culture.
Lavery/Pennell and Shared Value (07:11)
Michael Porter introduced the concept of shared value as a way to solve environmental and social problems through capitalism; the concept challenges the old paradigm that exploitation leads to profit. A consulting firm in London is working to apply this model, but the change takes years. Greg Lavery explains that CEOs are resistant to this change because it takes time and a new mindset.
Giving Back on the Ivory Coast (07:43)
Nestle is developing better varieties of cocoa trees, investing in training programs for planters, and building schools for children. Nathan Bello explains that the planters recognize the new varieties' success and benefit from the training.
B Corps and Economic Benefit (07:05)
Porter claims that while companies advertise their good deeds, they are afraid to talk about the economic benefit. Benefit corporations are companies that prioritize serving the public interest through environmental and social programs. Andrew Kassoy explains that while investors were skeptical at first, they often realized that this philosophy in business creates more value and better governance in the long run.
Credits: What If We Could Revitalize Capitalism? (01:13)