From shareholder primacy to stakeholder capitalism
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From shareholder primacy to stakeholder capitalism
For many years, the conventional wisdom held that corporate executives should focus on maximizing shareholder value, and this goal was reinforced by compensating executives with stocks.4 However, these strategies have a number of flaws. They create a bias towards short-term results (such as quarterly earnings) at the expense of longer-term prioriti
... See moreJoanne Molesky • Lean Enterprise: How High Performance Organizations Innovate at Scale
If the purpose of each corporation is not primarily the health and well being of the earth and all life thereon, if its principles are not based on equitable distribution of power and wealth, if it avoids responsibility for the sustenance of family, community and place, if it has no belief system, or one devoid of ethical and moral content, it is d... See more
Dee Hock • CORPORATIONS: THE SOCIALIZATION OF COST AND CAPITALIZATION OF GAIN
sari added
Free-enterprise capitalism must be grounded in an ethical system based on value creation for all stakeholders. Money is one measure of value, but it is certainly not the only measure.
Rajendra Sisodia • Conscious Capitalism: Liberating the Heroic Spirit of Business
If your role is focused on creating user and customer value, but management and leadership are incentivized to goose shareholder value, you are subject to that structural relationship and often have very little power to change it.
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The realization that focusing only on profit-seeking practices had human costs that ultimately hindered corporate efficiency led to a notion of corporate responsibility.
Diana Barrero Zalles • Transparency in ESG and the Circular Economy: Capturing Opportunities Through Data
For a long time shareholder capitalism reigned alone: businesses exist to make money!
Then one day came the benefit corporation (B corp): businesses exist to make impact!
BUT WHAT IF... companies weren’t primarily vehicles to make money or vehicles for customers to receive value. WHAT IF... companies were vehicles for people to contribute vibrantly... See more
Then one day came the benefit corporation (B corp): businesses exist to make impact!
BUT WHAT IF... companies weren’t primarily vehicles to make money or vehicles for customers to receive value. WHAT IF... companies were vehicles for people to contribute vibrantly... See more
Bree Groff • The E Corp
linda added
The myth that profit maximization is the sole purpose of business has done enormous damage to the reputation of capitalism and the legitimacy of business in society. We need to recapture the narrative and restore it to its true essence: that the purpose of business is to improve our lives and to create value for stakeholders.