Dogen Z
aka YOSUQUE
- 23 Apr 2007
- 1,035
- 20
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Michael Porter discovers Konosuke Matsushita
In a recent issue (Feb.?) of HBR, renowned professor Michael Porter, who wrote "Competitive Advantage" and developed five-factor industry analysis, co-authors an article on the new capitalism. The old Anglo-American model, based on greed and avariciousness, which are euphemistically termed "self-interest," and on infinite growth led to the collapse of the financial industry and the Great Recession. The old capitalism, which advocated that firms should only maximize shareholder value, is now in deep disrepute. In the new capitalism, according to the authors, firms should try to maximize shared values that include social and other human values of concerns. Under the old capitalism, these were known coldly as "externalities."
Prof. Porter should familiarize himself to the philosophy of Konosuke Matsushita, founder of Matsushita and Panasonic. It is more or less in keeping with what is being touted as the new capitalism. For example, National Panasonic's credo states, "Profits should not be a reflection of corporate greed, but a vote of confidence from society that what is offered by the firm is valued." Matsushita had similar thoughts about the purpose and nature of organizations, and I encourage Prof. Porter to read up on it. Matsushita's line of thinking is more or less what is considered Japanese capitalism. So once again Japan proves to be ahead of the curve.
In a recent issue (Feb.?) of HBR, renowned professor Michael Porter, who wrote "Competitive Advantage" and developed five-factor industry analysis, co-authors an article on the new capitalism. The old Anglo-American model, based on greed and avariciousness, which are euphemistically termed "self-interest," and on infinite growth led to the collapse of the financial industry and the Great Recession. The old capitalism, which advocated that firms should only maximize shareholder value, is now in deep disrepute. In the new capitalism, according to the authors, firms should try to maximize shared values that include social and other human values of concerns. Under the old capitalism, these were known coldly as "externalities."
Prof. Porter should familiarize himself to the philosophy of Konosuke Matsushita, founder of Matsushita and Panasonic. It is more or less in keeping with what is being touted as the new capitalism. For example, National Panasonic's credo states, "Profits should not be a reflection of corporate greed, but a vote of confidence from society that what is offered by the firm is valued." Matsushita had similar thoughts about the purpose and nature of organizations, and I encourage Prof. Porter to read up on it. Matsushita's line of thinking is more or less what is considered Japanese capitalism. So once again Japan proves to be ahead of the curve.
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