“On the face of it, shareholder value is the dumbest idea in the world” — Jack Welch, 2009. As GE’s CEO in the 80s, however, Welch championed corporate focus on shareholder returns. “Converts to the creed”, the Economist summarizes, “had little time for other ‘stakeholders’: customers, employees, suppliers, society at large and so forth.” What went wrong? Steve Denning describes how such a stance is counterproductive, creates turmoil in capitalism and fosters an environment in which “CEOs and their top managers have massive incentives to focus most of their attentions on the expectations market, rather than the real job of running the company producing real products and services.”
posted by the mad poster! on Dec 27, 2011 - 38 comments

The myth of shareholder capitalism. It's commonly believed that a company's primary duty is to maximize shareholder value. Anything that might reduce the returns to shareholders is questionable, including giving employees good wages and benefits. According to a recent article in the Harvard Business Review, this is a misconception, and corporate management is being taught the wrong lessons based on obsolete case law. [more inside]
posted by Lexica on Apr 2, 2010 - 40 comments

How a New Jobless Era Will Transform America
The Great Recession may be over, but this era of high joblessness is probably just beginning. Before it ends, it will likely change the life course and character of a generation of young adults. It will leave an indelible imprint on many blue-collar men. It could cripple marriage as an institution in many communities. It may already be plunging many inner cities into a despair not seen for decades. Ultimately, it is likely to warp our politics, our culture, and the character of our society for years to come. (via rw)
posted by kliuless on Feb 11, 2010 - 84 comments

Cheap, safe drug kills most cancers. That's the good news. The bad news is that because there's no patent and it's so cheap to make, researchers may not be able to get funding from the private sector for further research since the treatment wouldn't make a profit. [Via Hullabaloo.]
posted by homunculus on Jan 18, 2007 - 122 comments

Ethics cost money - The Los Angeles Times discusses the effect of Levi Strauss's ethical standards on their place in a competitive marketplace. Can a company succeed when they place their morals ahead of their money?
posted by Argyle on Jun 26, 2003 - 9 comments