In the United States, we’re having an election in which there’s a lot of discussion about the economy. The question is, are we talking about the right things? Are the candidates, the media and the general public talking about the right issues?

Michael Porter, Bishop William Lawrence University Professor at Harvard Business School, would like to see us change the direction of the conversation.  Speaking to a crowd of business leaders at the Premier Business Leadership Series in Las Vegas today, he encouraged attendees to play a part in that change.

"We, in the business community, are at a moment where we personally have to step up on this issue," says Porter. "It is disturbing what is happening to the legitimacy of business in society, but I believe we can make a difference by not only influencing what happens in Washington, but also in our own actions."

Porter's recommendations are based on an extensive, multi-year research effort conducted through the Harvard Business School. They are intended to be bipartisan. In fact, Porter says, the trends he's seeing started more than 20 years ago, they extend beyond the two-party system and "there's plenty of blame to go around."

So what should we be talking about? Not the recession, not stimulation and not job creation, says Porter. We should be talking about American competitiveness.

"A lot of people - not just Americans - are worried about America," says Porter. "If we’re not economically successful, our ability to move the world is severely diminished. If America isn’t healthy, it starts to create concern about who else is going to take leadership in the global economy and what are their philosophies."

Porter defines and measures American competitiveness in two parts: 1) The ability of American businesses to compete in a global market and 2) the ability of the American worker to maintain decent wages and a good standard of living.

"We HAVE to do these two things together," says Porter. Republicans tend to focus on the first part and Democrats tend to focus on the second part, but we need to do BOTH."

How can we achieve these dual aspects simultaneously? According to Porter, we have to create a business environment that allows us to be highly productive, includes a high participation of working age citizens in the workforce, and provides jobs that are exposed to international competitiveness.

To achieve those goals, Porter offers policy recommendations that include balancing the budget and easing immigration restrictions on highly skilled workers. But more importantly, he challenges businesses to take action in the following ways:

1. Run the business well. "Use SAS, be sophisticated, be innovative and drive productivity improvement. "The more we can do well, the better we can support decent wages," says Porter.
2. Strengthen the commons in US communities. The commons includes your supplier base, your pool of employees and your technical capabilities. It is the environment that helps your business succeed. "Many companies, as they pursued globalization, lost the idea of the commons at home and took it for granted and thought it was somebody else’s job to worry about that stuff," says Porter. Successful examples of commons investments include developing training or apprenticeship programs, increasing partnerships with local suppliers, and partnering with local colleges or universities.
3. Make smart location decisions. Understand the hidden costs of off shoring. "Globalization 1.0 missed a lot of hidden costs," explains Porter. "Yes, we may see lower wages overseas, but we also see more supervisors, more freight, more inventory, more workers, more turnover, we are less able to respond to shifts in the market, and more." As a result, a lot of companies are rethinking location changes, and the next wave of globalization, according to Porter, is going to be more about recognizing the strengths of the U.S.
4. Change the way we deal with government. "Why do we have a complicated tax code?" asks Porter. "Because of us." Porter encourages business leaders to advocate for better business environments for everyone, not just for themselves. "Stop advocating for things just for us and advocate for the entire environment. Ultimately selfish behavior produces a solution where we’re not better off," says Porter.