Worth pondering.................................

Maximizing shareholder value may be the dumbest financial and social concept ever created.


According to conventional wisdom (which rarely is either conventional or wisdom) guiding a company for the sole benefit of its shareholders, rather than stakeholders, will maximize shareholder return and societal contribution.  Wrong!


There are many reasons why time has proven this theory to be counterfactual; the biggest one being shareholders are the most “mobile” of all the interested parties.


In other words, shareholders can sell their shares in a millisecond.  The workers and suppliers, who tend to care the most about issues which affect the long-term health of the company, have to stick around.


-Tony Isola, as extracted from here