Corporate and Societal Interests must Converge

Over the past several decades, one of the great discussions within capitalism has centered on defining exactly what a business is and what its obligations are to society at large and to the many stakeholders participating in business systems, including customers, shareholders, employees, suppliers, and communities, to name a few.

Even when faced with reputational challenges, companies sometimes launch social initiatives as side projects only tenuously linked to the core business, rather than strengthening and articulating the ways in which the core business adds value to society.

While it is important to operate the core business in a way that delivers value for society and the business, a healthy, high-performing company can and must go further.

To achieve the magnitude of change the United Nations, World Wildlife Fund, CDP and others have called for in food, such as a reduction in water usage, a 3 percent annual decrease in private-sector greenhouse-gas emissions, and a 15 percent increase in yield in the next ten years, leaders of the food system must take concerted, coordinated action.

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source:http://www.mckinsey.com/insights/strategy/business_and_society_in_the_coming_decadesbyKathleen McLaughlin

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