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Creating shared value

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  1. In a narrow conception of capitalism, business and society have been pitted against each other
  2. The opportunities have been overlooked: companies are the best placed and the most powerful for addressing societal issues
  3. Aware of this, company will have to reconceive products and markets
  4. Opportunities to create shared value arise because societal problems can create economic costs in firms' value chain - as excess packaging

In a narrow conception of capitalism, business and society have been pitted against each other. Business has been viewed as principally responsible for social, environmental and economic problems. The problem comes in part from companies themselves: they optimize short-term financial performance and ignore customers' needs and well-being. Companies disregard social issues because economists have legitimized the idea that provides societal benefits decrease economy success. It is seen has a constraint. This has prevented company from using its full capacities to overcome society's largest challenges. Addressing problems has been relayed to NGOS or government.

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