Professor Porter talks about the abundance of problems that exist in the world—what problems do you see that exist within your specific community? What kind of business could you create that might help solve these problems? Why and how would this business help? Explain.

Question

What do you think that Professor Porter means when he says, “I think many have seen business as the problem, or at least one of the problems, in many of the social challenges we face”? Do you agree with this statement? Explain your thoughts.
What are the similarities and differences between the way that Professor Porter discusses profits in business and the way that profits are discussed in the unit? Explain.
Describe one example of a company or business that is addressing one or more of the fundamental societal issues mentioned in the video. Explain how this business is helping address this problem.
According to Professor Porter, what is shared value? Explain. Why might this term be important to understand for an entrepreneur or someone starting a business?
Consider a business in your community—how might this business help address or solve a social problem? Explain.

Answer 1

Problems in the Community and Business Solutions

One prominent problem in my community is food insecurity, where many families lack reliable access to affordable and nutritious food. A potential business solution could be a community-focused grocery store that prioritizes local produce and offers sliding scale pricing based on income. This store would work closely with local farms to reduce costs and ensure freshness while creating a supportive environment that encourages healthier eating.

By partnering with local organizations to distribute surplus food or offering cooking classes on how to prepare meals with available resources, this grocery store could significantly reduce food waste and empower the community to make healthier choices. The idea is not only to provide food access but also to foster a sense of community among residents.

Business as a Problem in Social Challenges

When Professor Porter states that “business has been seen as the problem, or at least one of the problems,” he acknowledges a common perception that commercial interests often contribute to societal issues, such as environmental degradation, inequality, or worker exploitation. Many view profit-driven motives as leading to negative externalities that affect communities. I agree with this perspective, as historically, several businesses have prioritized profits over social responsibilities, often exacerbating societal problems rather than solving them.

Profits in Business: Porter's View vs. Unit Discussions

Professor Porter discusses profits in the context of shared value, viewing them as not just a measure of success but as a means to create social good—profits generated through addressing societal challenges, thereby benefiting both the business and the community. In contrast, some discussions on profits may focus narrowly on financial gain as an end goal, potentially overlooking how profit generation can be intertwined with social impact. Porter's view emphasizes sustainability and the interconnectedness of economic and social objectives, advocating for a holistic understanding of profit.

Example of a Company Addressing Societal Issues

One company that exemplifies addressing societal issues is Warby Parker, which tackles the issue of vision care accessibility. For every pair of glasses sold, they distribute a pair to someone in need through their “Buy a Pair, Give a Pair” program. This business model not only provides stylish eyewear but also addresses the significant gap in access to vision care in underserved communities. By combining profit-making with social responsibility, Warby Parker demonstrates how businesses can actively contribute to resolving societal inequalities.

Understanding Shared Value

Shared value, as explained by Professor Porter, refers to the concept of creating economic value in a way that also creates value for society by addressing its needs and challenges. This term is crucial for entrepreneurs as it emphasizes the idea that businesses can thrive while also positively impacting their communities. Entrepreneurs who understand shared value can design their business strategies to align with social issues, leading to sustainable businesses that meet customer needs while fostering community development.

Addressing Social Problems with Local Businesses

Consider a local coffee shop that sources its beans from fair trade suppliers and employs local artisans for its baked goods. This business could contribute to social issues by supporting fair wages, promoting ethical sourcing, and creating job opportunities in the area. Additionally, the coffee shop could host community events focused on local issues, fostering dialogue and mobilizing efforts to address them collaboratively.

In summary, the intersection of business and societal challenges offers entrepreneurs a unique opportunity to create impactful solutions that benefit both their ventures and the communities in which they operate. By focusing on shared value and addressing pressing issues, businesses can play a pivotal role in driving social change while achieving economic success.