Why Business Can Be Good at Solving Social Problems

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YouTube Video Reflection
Video 1: Why Business Can Be Good at Solving Social Problems
Michael Porter supports a business-centric approach to solving social problems even as profit is not the main objective as business strategies help get solutions to problems. The assumption that business analysis is appropriate for solving social problems ignores that the current models of dealing with social problems are not scalable like business models. Profit allows solutions created to be scalable. Besides scalability, self-sustaining enterprises can deal with different social problems in the long term by incorporating business strategies in problem-solving. 
 Corporations are increasingly expected to highlight how their corporate social responsibility (CSR) addresses social issues and impacts local communities. Additionally, there are expectations that businesses and nonprofit organizations become sustainable. Private businesses, including corporations, are well-placed to address sustainability, focusing on problem-solving and innovation. 
Finding ways to increase profits from resources enhances competitiveness, and this is common in businesses implementing strategies to be more competitive. Still, the business world is different from the non-business world, and business models should be evaluated before their application to solving social problems. 
 Rather than focusing on small incremental solutions, the business allows decision-makers to create resources and meet various needs besides profit. Corporations emphasize wealth creation and profit maximization, but sometimes, stakeholders in organizations addressing social problems fail to appreciate how seeking profits allow corporations to address problems from multiple fronts. Resources and knowledge are essential in addressing complex issues, including social problems. A business solves problems and makes a profit that allows solutions to grow, and business models are potentially beneficial to promote social innovation. There is an opportunity to solve complex social problems if more business models and ideas are focused on self-sustenance.
Video 2: “Debate: The Michael (Porter) v. Michael (Sandel) 
Michael Porter focuses more on businesses solving social problems while generating money, but Michael Sandel is concerned with commodification and monetization of the current culture incentives. Thus, Porter promotes the idea of market efficiency and mobilizing resources as a way to address problems beyond business. Sandel is not opposed to markets but prefers that markets are not too powerful in areas where there is no need to incorporate business practices. The two speakers have opposing views on the extent to which markets should be powerful and the impact of markets on society.
Porter is right to mention how markets can address different problems by focusing on solutions. However, Porter fails to address that markets at times deal with short-term gains and not long-term gains and solutions. Businesses use strategic management to support decisions, leverage competitivenes...