Organization 21C: Someday All Organizations Will Lead This Way

Leadership's Role in Promoting Balance and Thereby Improving Value Creation

We can now imagine two different processes that largely determine which stakeholders and which purposes are, in fact, given primacy.

The first, undoubtedly common in practice, results from the negotiating position, power, and communications advantage of one or other stakeholder. It is not surprising, therefore, that the phenomenon of global financial markets and the increasing transparency and immediacy of company financial data has led to the supremacy of shareholders and shareholder value in the current equation. This may or may not last, as other stakeholders are increasingly disaffected, and disenfranchised, but armed with the means to reverse the current balance. ...