Organization 21C: Someday All Organizations Will Lead This Way

Consider Shareholder Value as the Result, not the Main Purpose, of Enterprise Value Creation

We can see from the aforementioned arguments that to ascribe singularity and centrality of enterprise purpose to shareholder value creation is plainly wrong and misleading. The confusion arises because shareholder value is the only meaningful measure of overall enterprise success. The present value of all future cash flows remains the best overall demonstration of whether stakeholders are working together to create value. We have already seen that to single-mindedly chase shareholder value at the expense of other stakeholders and their purposes could in fact put the achievement of shareholder value improvement at risk. On the contrary, to pursue simultaneously ...