Philanthropist and retired businessman Daniel Chavez Moran followed the example of his mother, a great teacher who dedicated her life to helping children in Mexico combat ignorance and poverty, by founding the non-profit Vidanta Foundation, with the goal of promoting public policies that support democracy and economic development in Latin America as well as promote corporate social responsibility. The impact corporations can have is explained in a recent paper published by the Harvard Business Review, excerpted here:
Companies must take the lead in bringing business and society back together. The recognition is there among sophisticated business and thought leaders, and promising elements of a new model are emerging…
The solution lies in the principle of shared value, which involves creating economic value in a way that also creates value for society by addressing its needs and challenges.
…The moment for a new conception of capitalism is now; society’s needs are large and growing, while customers, employees, and a new generation of young people are asking business to step up.
…The concept of shared value, in contrast, recognizes that societal needs, not just conventional economic needs, define markets. It also recognizes that social harms or weaknesses frequently create internal costs for firms—such as wasted energy or raw materials, costly accidents, and the need for remedial training to compensate for inadequacies in education. And addressing societal harms and constraints does not necessarily raise costs for firms, because they can innovate through using new technologies, operating methods, and management approaches—and as a result, increase their productivity and expand their markets.