Is ‘Shareholder Value’ Bad for Business?

The uprising against the owners of Market Basket that’s been unfolding over the past several weeks looks at first like a classic showdown between the powers that be and the little guys who would. In one corner stands a coalition of board members and major shareholders who think it should be returning higher profits; in the other, a crowd of employees fiercely devoted to the recently fired CEO, who won their loyalty by paying high wages, providing generous benefits, and handing out regular bonuses. Amazingly, even customers have joined the revolt, turning Market Basket stores into ghost towns and costing the company millions of dollars in losses.

via Is ‘shareholder value’ bad for business? – Ideas – The Boston Globe.

BIZCATALYST 360°
BIZCATALYST 360°https://www.bizcatalyst360.com/about/
We are an Award-Winning lifestyle, culture, and business new media digest, serving as the global hub for enhanced performance and well-being. With an emphasis on action, our 500+ international contributors empower people to transition from knowing what to do to actually doing it. All of this complemented by syndication relationships with a choice group of equally innovative media outlets. Today and every day, we simply deliver the very best insights, intelligence, and inspiration available anywhere. And we do it our way, placing our writers and our audience at the forefront. It's timeless. It's evergreen. It's simply good stuff. Period. More About BC360°
avatar
3000
  Subscribe  
Notify of
Dave Woodward

The introduction posits that there is a conflict between maximizing shareholder value and creating a great work environment for employees. I believe those are false alternatives. Every company is in a competition, nor only for success but for its very survivial. Pricing is constrained in a competitive enviroment. To command higher prices a company must provide higher value to its customers. That, in turn, is best served by employees who are motivated to provide great products and to innovate. To encourage employee loyalty, high standards of performance, and innovation they must like and value their job. The way to an employee’s heart is through a positive, rewarding work environment and competitive pay and benefits. Think of an eight cylinder engine. One cannot bet getter performance by pitting four cylinders against the other four. Attention must be paid to maximizing customer satisfaction. That is the only way to achieve success as an organization. Not many excel at this.

JUST 1 CLICK

IS ALL IT TAKES TO LEARN SOMETHING NEW TODAY

Must Read

Success – at What Price?

Today’s most successful companies recognize the currencies that drive high performing, employees to achieve organizational goals. Employee engagement is not a cost of success, it's...

Changing The World –By Advocating For Children

As Publisher and Editor-in-Chief of this global media platform & Chief Encouragement Officer of our affiliated pro bono social impact enterprise; GoodWorks 360°, I was delighted to have...

JUST 1 CLICK

IS ALL IT TAKES TO BEGIN ENJOYING OUR PODCASTS

JUST 1 CLICK

IS ALL IT TAKES TO EXPLORE OUR INSPIRING GLOBAL COMMUNITIES

Email List Login