Shareholder value is a result, not a strategy
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- Written by: LUMINIS
- Category: Business Management Blog
In March 2009, the ‘Financial Times’, the leading financial newspaper of US published a series of articles on ‘The Future of Capitalism’. It published an interview with Jack Welch, who is widely regarded as the father of the “shareholder’s value” movement, has said that the obsession with short-term profits and share price gains that has dominated the corporate world for over 20 years was “a ‘dumb idea”.
“On the face of it, shareholder value is the dumbest idea in the world,” he said. “Shareholder value is a result, not a strategy...your main constituencies are your employees, your customers and your products.”