Government and Creating Shared Value

“Today, many global corporations have more economic power in the world market than do entire nations. Fifty of the largest 100 economies in the world are run by multinational corporations, not by countries. General Motors is larger than Greece, Thailand, or Norway; Mitsubishi is larger than Saudi Arabia; Wal-Mart is larger than Malaysia, Israel, or Colombia.”

– Going Global, pg. 90

“Multinational Enterprises (MNEs) have more power than governments or religion in determining where the future of our world goes (Ehrenfeld, 2009), yet, these companies are selfgoverned and often have never seen much of the land, air, or communities they impact. While Corporate Social Responsibility Statements (CSR) and philanthropic initiatives are growingly available in such companies, companies are also being held increasingly accountable to the damage being done to the earth (Porter et al., 2011). Whether this is right or wrong, business is the world’s most influential citizen and no citizen can take on tasks such as climate change and environmental degradation alone.  Government taxes and regulations can create opportunities for businesses and consumers to change their way of living and doing business into one that creates shared value and benefits the environment. Governments alone cannot change our impact on the earth; it takes individuals, activists, and businesses working with governments to create a supported economic system. Through regulation and taxes that promote value creation, government can change their standing from a business barrier to a support system that inspires growth and prosperity…”

 Read here: The Role of Government in Shared Value Creation

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