Upping stock prices and shareholder value is no longer the measure of success. The best run companies do more.
“Shareholder profits can no longer be the primary goal of corporations,” was the statement that came from a group of top CEOs in the US this summer. Businesses should be balancing the needs of shareholders with customers, employees, suppliers and local communities. “We commit to delivering value to all of them.”
You have a responsibility to deliver value to the wider world around you, not just to shareholders.
Makes sense? Well, more and more people are catching on!
It’s a great statement especially coming from that group of powerful people. But what needs to happen in practice?
Shift your focus to social revenue.
For business leaders: if stock prices have been your main KPI until now, the opportunity is wide open to start finding ways to evaluate how you are increasing your company’s social revenue.
For HR: introduce and develop your insights into the employee experience. Use that information to make your organisation run better.
This is your opportunity to understand what your overall impact truly is on the broader world: inside and outside your organisation. To really work on what you want to be creating in the world.
Because the best run companies do more.
Referenced in this episode:
"Group of top CEOs says maximizing shareholder profits no longer can be the primary goal of corporations" - The Washington Post
"6 Ways CEOs Can Prove They Care About More Than Shareholder Value" - Harvard Business Review
https://hbr.org/2019/09/6-ways-ceos-can-prove-they-care-about-more-than-shareholder-value
