TEDGbobal 2013 Michael Porter Why business can be good at solving social problems

Maximum marks = 40
1.Q. Michael Porter mentions 9 different social problems at the beginning of his talk. Name
at least 4 of these problems. [4 marks, 1 per correct item for a maximum of 4]
A: Poor nutrition, access to water, climate change, deforestation, lack of skills, insecurity, not
enough food, not enough healthcare, pollution.

2.Q. According to Porter, This is a low point in the respect for business. Why? [2 marks].
A:
Either: Businesses are seen by many people as the source of many of todays social
problems.
Or: People have grown wary of industries such as the banking, fast food, and drug industry.
3. Q. What kind of organizational form has typically been seen as responsible for dealing
with social problems? [2 marks]
A. The NGO.
4. What is the biggest obstacle facing NGOs and why? [4 marks]
A.
[NGOs arent making enough progress (fast enough), 2 marks] because [they cant scale
(because they lack resources), 2 marks].
5. What two reasons does Michael Porter give for why businesses can be good at solving
social problems? [4 marks]
[Businesses have/can generate/ the resources to deal with social problems, 2 marks] and
their [profit allows solutions to be scaled, 2 marks].
6. What does Porter mean when he says that there has historically been a tradeoff between
social performance and economic performance? [2 marks]
A. Businesses can only profit from social problems, OR: Businesses cant make a profit from
solving social problems.
7. What example(s) does he give of this tradeoff? Name at least one and explain it. [4
marks]
A. Either: Pollution [2 marks] A business makes a profit if it pollutes (because reducing
pollution is expensive), 2 marks].
Or: Unsafe working environments [2 marks], (because creating a safe working environment
costs money), 2 marks].

8. Porter states, however, that the reality is the opposite. Give one reason why this is so. [4
marks]
A. [Businesses make a profit from solving social problems, 2 marks] because they make the
business [2 marks for one of these items]
a) more productive
b) more efficient
c) more profitable (waste less)
9. Shared value is a higher kind of capitalism. How is it different from normal capitalism? [2
marks].
A. (one of the following)
a) it meets important needs
b) it doesnt compete for trivial differences in product attributes
c) it doesnt compete for market share
10. Q. Name 2 examples of companies and their products that have started to tackle social
problems. [4 marks, 1 per company, 1 per product].
A.

Dow Chemical: trans fat/saturate fat replacement products

Jain (Jane) irrigation: drip irrigation
Fibria: eucalyptus (pulp) to increase paper yield
Cisco: training people in I.T. skills

11. Q. How does Porter define shared value? [2 marks]

A. addressing a social issue with a business model OR: when we can create social value and
economic value simultaneously
12. How can businesses become more efficient at solving social problems? [2 marks]
A. By working together/collaborating with NGOs and/or governments
13. What does Porter mean by governments that call all the shots. [2 marks]
A. Governments that make all the (important) decisions.
14. What role can governments have on businesses in enabling shared value? [2 marks]
A. Governments can increase the willingness and the ability of companies to compete in this way
[create social value].