Wednesday, June 21, 2006

How over-emphasis on shareholder value can destroy a business

I was speaking today to 50 executives responsible for corporate and social responsibility today:


RISK:  In pursuing only shareholder value and bottom-line profit, loose the plot and damage the business

OPPORTUNITY:  Drive the business on a broader and more profitable mission, that motivates, inspires and wins consumer as well as community, worker and shareholder approval


Bad news about corporate values can hit any corporation like a tornado, ripping the guts out of the business, shattering market confidence, scandalising customers and causing outrage in the general public. 


          7 out of 10 chief executives report that Corporate Social Responsibility is (now) an essential issue to their business

          89% of marketing directors believe (now) that business should be involved in addressing social issues of the day

          90% of workers feel proud of their companies' values when they support a good cause

          87% of workers feel a strong sense of loyalty


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