“The capitalist system is under siege. In recent years business has increasingly been viewed as a major cause of social, environmental, and economic problems… Companies are widely perceived to be prospering at the expense of the broader community. ” This statement appeared in a 2011 Harvard Business Review article by Harvard business professor Michael Porter and management consultant Mark Kramer. Just look at the Occupy movement and how it has spread around the globe to see this observation in action.

The way to combat massive social problems, they propose, is to make business the solution – they call it ‘creating shared value’(CSV). CSV “is not social responsibility, philanthropy, or even sustainability, but a new way to achieve economic success.” It is addressing a social issue with a business model. At its heart, CSV means “businesses must reconnect company success with social progress.”

The CSV idea has injected new energy into the CSR and sustainability movements by rightly advocating a better alignment between a company’s core strategy and the social problems on which it can have an impact. The role of business is so crucial because only it has the capital and knowledge resources to make a difference – both alone and as a partner to NGOs. Watch Michael Porter explain the case for letting business solve massive societal problems like climate change and access to water.

Can these ideas really work? Some degree of rethink is certainly necessary. Companies that embrace these ideas are guided by leaders who value the importance of long-termism – understanding that real value and real wealth are created by adopting a long-term perspective, including the full impacts of their activities and the needs of future generations.

As investors, we need to be aware – but also tolerant – of the short term impacts of long-term thinking, and watch for the new business and investment opportunities as they arise and influence existing industries and ways of doing business.