Who is the Company responsible for?
Though not entirely ingenious, Professor Freek Vermeulen's blog posting on "shareholder value orientation" is rather thought-provoking. When faced with a diversity of interests, or opinions, I think "alignment" is the key word for problem-solving. Indeed the ability to align interests should be a key part of what the senior managers are paid for. When it comes to prioritization, I also agree that there is the element of choice, especially for the CEO.
The shareholder's value is common sense to me, that a company's ultimate goal is to grow its value for the shareholders. But I am not sure about what it means by maximization. Perhaps it is relative to the timing. However, when it comes to the time for budgeting, I (almost) certainly put the staff interests as my top priority and push the envelope as such, and feel very right in doing so - knowing very well that the bottom line being what the company is prepared to pay.
The shareholder's value is common sense to me, that a company's ultimate goal is to grow its value for the shareholders. But I am not sure about what it means by maximization. Perhaps it is relative to the timing. However, when it comes to the time for budgeting, I (almost) certainly put the staff interests as my top priority and push the envelope as such, and feel very right in doing so - knowing very well that the bottom line being what the company is prepared to pay.
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