Among the developments followers of business ethics may have thought they’d never see, the end of the shareholder value myth has to rank very high.
Stakeholders are pushing companies to wade into sensitive social and political issues — especially as they see governments failing to do so effectively.Since the 1970s, the prevailing ethos of corporate management has been that a company’s prime responsibility — effectively, its only responsibility — is to serve its shareholders. Benefits for those other stakeholders follow, but they’re not the prime concern.
Column: The gun control issue is destroying the myth that ‘shareholder value’ is a corporation’s only goalThe statement may reflect a sea change in the attitude of Big Business CEOs to challenges to their management principle coming from social organizations and especially from some candidates for the Democratic nomination for president, notably Sens. Elizabeth Warren and Bernie Sanders.
Dimon, meanwhile, said in his annual letter to shareholders: “In the past, boards and advisors to boards advised company CEOs to keep their head down and stay out of the line of fire.” But “things have changed. ... If companies and CEOs do not get involved in public policy issues, making progress on all these problems may be more difficult.
hiltzikm Congressman Mike Johnson 4th District of Louisiana, has power to refer Judge Friedman for investigation. Mr. Johnson presides on the Judiciary Committee for US House of Representatives. He represent David Louis Whitehead as his constituent! Blast. The request was made in 2017.
hiltzikm I thought doing what is right is in the long term interest of the shareholders? The problem is executive compensation plans with the lifespan of a gnat.
hiltzikm In doubt. American's greed culture is a disgrace. I hope so.
hiltzikm No. It can’t change. Adam Smith is a vindictive mf’er. He’s undefeated since 1776. Those CEOs that don’t produce returns for investors will be ex-CEOs