Download or read book A One Legged Stool How Shareholder Primacy Has Broken Business And What We Can Do About It written by Ed Chambliss and published by Best Friend Brands, LLC. This book was released on 2022-03-14 with total page 270 pages. Available in PDF, EPUB and Kindle. Book excerpt: Have you ever wondered if business needs to be so...unbalanced? Is putting shareholders above everyone else the only way for private enterprise to be successful? Is that "just the way it is?" The short answer is "no." Before "shareholder primacy" took hold in the 1970s, investors weren't more important than other stakeholders. Companies balanced the interests of all the legs of the corporate stool - customers, employees, communities, and shareholders - and everyone's life got better. So, what happened? How did we get to today, where "maximizing shareholder value" is seen as the panacea for all the world's ills? And, more importantly, what's the path forward that allows business to profit by applying its significant resources to solving society's problems, rather than making them worse? We all rely on the stool of business to elevate our lives. Let's fix it before it collapses.
Download or read book Beyond Shareholder Primacy written by Stuart Hart and published by Stanford University Press. This book was released on 2024-04-09 with total page 521 pages. Available in PDF, EPUB and Kindle. Book excerpt: From the author of Capitalism at the Crossroads, a call to consciousness—and action—for individuals, organizations, communities, and nations. Our current Milton Friedman–style "shareholder primacy capitalism," as taught in business schools and embraced around the world, has become dangerous for society, the climate, and the planet. Moreover, Stuart L. Hart argues, it's economically unnecessary. But there are surprising reasons for hope—from the history of capitalism itself. Beyond Shareholder Primacy argues that capitalism has reformed itself twice before and is poised for a third major reformation. Retelling the origin story of capitalism from the fifteenth century to the present, Hart argues that a radically sustainable, just capitalism is possible, and even likely, in our lifetime. Hart describes what it will take to move beyond capitalism's present worship of "shareholder primacy," including reforms to all major economic institutions. A key requirement is eliminating the "externalities" (or collateral damage) of our current shareholder capitalism. Sustainable capitalism will explicitly incorporate the needs of society and the planet, include a financial system that allows leaders to prioritize the planet, reorganize business schools around sustainable management thinking, and enable corporations not just to stop ignoring the damage they cause, but actually begin to create positive impact.
Download or read book The Shareholder Value Myth written by Lynn Stout and published by ReadHowYouWant. This book was released on 2012-05 with total page 204 pages. Available in PDF, EPUB and Kindle. Book excerpt: Proves that shareholder primacy has no basis in law or economics and does not deliver better bottom - line results. Suggests better ways to think about shareholders and their relationship to corporations Written by one of America's most distinguished legal scholars, Executives, investors, and the business press routinely chant the mantra that co...
Download or read book The Shareholder Value Myth written by Lynn Stout and published by Berrett-Koehler Publishers. This book was released on 2012-05-07 with total page 146 pages. Available in PDF, EPUB and Kindle. Book excerpt: Distinguished legal scholar Stout proves that there is in fact absolutely no legal obligation for corporations to maximize shareholder value. She looks at new theories that not only better serve the needs of real human beings who invest, but of corporations and society as well.
Download or read book Reconstructing the Corporation written by Grant M. Hayden and published by Cambridge University Press. This book was released on 2021-03-11 with total page 289 pages. Available in PDF, EPUB and Kindle. Book excerpt: Modern corporations contribute to a wide range of contemporary problems, including income inequality, global warming, and the influence of money in politics. Their relentless pursuit of profits, though, is the natural outcome of the doctrine of shareholder primacy. As the consensus around this doctrine crumbles, it has become increasingly clear that the prerogatives of corporate governance have been improperly limited to shareholders. It is time to examine shareholder primacy and its attendant governance features anew, and reorient the literature around the basic purpose of corporations. This book critically examines the current state of corporate governance law and provides decisive rebuttals to longstanding arguments for the exclusive shareholder franchise. Reconstructing the Corporation presents a new model of corporate governance - one that builds on the theory of the firm as well as a novel theory of democratic participation - to support the extension of the corporate franchise to employees.
Download or read book The Shareholder Value Myth written by Lynn Stout and published by . This book was released on 2012-05-07 with total page 276 pages. Available in PDF, EPUB and Kindle. Book excerpt: Proves that shareholder primacy has no basis in law or economics and does not deliver better bottom - line results. Suggests better ways to think about shareholders and their relationship to corporations Written by one of America's most distinguished legal scholars, Executives, investors, and the business press routinely chant the mantra that corporations are required to ''maximize shareholder value.'' The results have been disastrous. ''Shareholder primacy'' thinking causes corporate managers to focus myopically on short - term earnings reports at the expense of long - term performance; discourages investment and innovation; harms employees, customers, and communities; and causes companies to indulge in reckless, sociopathic, and socially irresponsible behaviors. It's the kind of thinking that led directly to the recent worldwide economic collapse. Jack Welch, once a shareholder primacy true believer, has famously called it ''the dumbest idea in the world.'' Lynn Stout proves that there is in fact no legal obligation for corporations to maximize shareholder value - scholars, lawyers, and corporate officers just assumed there was. Nor, she demonstrates, is maximizing shareholder value the optimal economic model - that's just another unproven assumption, one that is conceptually muddled and, Stout shows, unsupported by the actual evidence on what drives good corporate performance. As if this wasn't enough, Stout also shows how shareholder primacy actually hurts individual investors by obscuring their real, diverse, human interests in the name of serving a hypothetical, homogeneous, abstract, and conscienceless shareholder. Stout looks at new theories that better serve the needs not only of actual human beings who invest but of corporations and society as well. ''Calm, careful, plainspoken, and relentless argumentation that peels away the distracting layers of abstract mumbo jumbo to expose the lunacy of the underlying theory for all to see. Lynn Stout does the world a great favor in exposing shareholder value theory for what it is: flawed and damaging.'' - Roger Martin, Dean, Rotman School of Management, University of Toronto, and author of Fixing the Game.
Download or read book A One Legged Stool How Shareholder Primacy Has Broken Business And What We Can Do About It written by Ed Chambliss and published by Best Friend Brands, LLC. This book was released on 2022-03-14 with total page 270 pages. Available in PDF, EPUB and Kindle. Book excerpt: Have you ever wondered if business needs to be so...unbalanced? Is putting shareholders above everyone else the only way for private enterprise to be successful? Is that "just the way it is?" The short answer is "no." Before "shareholder primacy" took hold in the 1970s, investors weren't more important than other stakeholders. Companies balanced the interests of all the legs of the corporate stool - customers, employees, communities, and shareholders - and everyone's life got better. So, what happened? How did we get to today, where "maximizing shareholder value" is seen as the panacea for all the world's ills? And, more importantly, what's the path forward that allows business to profit by applying its significant resources to solving society's problems, rather than making them worse? We all rely on the stool of business to elevate our lives. Let's fix it before it collapses.
Download or read book The End Of Shareholder Value written by Allan A. Kennedy and published by Basic Books. This book was released on 2008-01-04 with total page 256 pages. Available in PDF, EPUB and Kindle. Book excerpt: In The End of Shareholder Value , Allan Kennedy shines the spotlight on a new revolution in business-as customers, employees, political and social leaders, and governing boards begin to challenge the cozy relationship between executives and investors that has crippled companies in the name of maximizing shareholder value. Analyzing both historical and current material, he explores the colorful history of corporations since the turn of the century, evolving from engines of innovation to machines driven by short-term financial gains. From GE to the hottest new Web-based start-up, those companies that subscribe to the shareholder value ethic cannot be sustained and will, inevitably, be replaced by those who figure out how to create and share wealth with all their important constituencies. Provocative and wide-ranging, The End of Shareholder Value showcases progressive experiments in the public and private sectors, outlines new roles and responsibilities for all participants, and challenges everyone to rethink the purpose of business in the new millennium.
Download or read book The Shareholder Action Guide written by Andrew Behar and published by National Geographic Books. This book was released on 2016-11-14 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: “A valuable call to action for small shareholders to change the ways big corporations do business.” —Robert Reich, former US Secretary of Labor Want to make misbehaving corporations mend their ways? You can! If you own their stock, corporations have to listen to you. Shareholder advocate Andrew Behar explains how to exercise your proxy voting rights to weigh in on corporate policies—you only need a single share of stock to do it. If you’ve got just $2,000 in stock, Behar shows how you can go further and file a resolution to directly address the board of directors. And even if your investments are in a workplace-sponsored 401(k) or a mutual fund, you can work with your fund manager to purge corporations from your portfolio that don’t align with your values. Illustrated with inspiring stories of individuals who have gone up against corporate Goliaths and won, this book informs, inspires, and instructs investors how to unleash their power to change the world.
Download or read book Family Business Ownership written by C. Aronoff and published by Springer. This book was released on 2016-05-24 with total page 97 pages. Available in PDF, EPUB and Kindle. Book excerpt: Ownership in a family business can be a rewarding and important role. It means stewardship, protection and nurturing the family business. As a guide for shareholders, this book will develop understanding and insight into the role of becoming more valuable as an owner, not just financially, but intellectually and emotionally as well.
Download or read book The Three Legged Stool To Wealth written by Virginia Grace Frost and published by . This book was released on 2019-07-05 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is a beginners' book for investing in the stock market, real estate, and buying or starting a business
Download or read book Corpocracy written by Robert A. G. Monks and published by John Wiley & Sons. This book was released on 2008-03-03 with total page 274 pages. Available in PDF, EPUB and Kindle. Book excerpt: Shareholder control over large corporations is worryingly weak and the unrestrained hunt for profits is taking a toll on the environment and society. In Corpocracy, corporate lawyer, venture capitalist, and shareholder activist Robert Monks reveals how corporations abuse their power and what we the people must do to rein them in. In a clear and careful analysis, Monks outlines a plan for reconciling the competing interests of corporations and society through thoughtful shareholder activism.
Download or read book Creating Shareholder Value written by Alfred Rappaport and published by Simon and Schuster. This book was released on 1999-10-13 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt: The ultimate test of corporate strategy, the only reliable measure, is whether it creates economic value for shareholders. Now, in this substantially revised and updated edition of his 1986 business classic, Creating Shareholder Value, Alfred Rappaport provides managers and investors with the practical tools needed to generate superior returns. After a decade of downsizings frequently blamed on shareholder value decision making, this book presents a new and indepth assessment of the rationale for shareholder value. Further, Rappaport presents provocative new insights on shareholder value applications to: (1) business planning, (2) performance evaluation, (3) executive compensation, (4) mergers and acquisitions, (5) interpreting stock market signals, and (6) organizational implementation. Readers will be particularly interested in Rappaport's answers to three management performance evaluation questions: (1) What is the most appropriate measure of performance? (2) What is the most appropriate target level of performance? and (3) How should rewards be linked to performance? The recent acquisition of Duracell International by Gillette is analyzed in detail, enabling the reader to understand the critical information needed when assessing the risks and rewards of a merger from both sides of the negotiating table. The shareholder value approach presented here has been widely embraced by publicly traded as well as privately held companies worldwide. Brilliant and incisive, this is the one book that should be required reading for managers and investors who want to stay on the cutting edge of success in a highly competitive global economy.
Download or read book Good Company written by Lenore Palladino and published by . This book was released on 2024-12-05 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The weak economic case for shareholder primacy-and how policy can win back what's been lost. In the era of shareholder primacy, share price is king. Businesses operate with short-term goals to deliver profits to investors, enjoying stability (and bonuses) in the process. While the public may bemoan the doctrine for its insularity and wealth-consolidating effects, its influence over corporate governance persists. In Good Company, lawyer-economist Lenore Palladino offers a calibrating argument for why shareholder primacy was never all that legal to begin with. Corporations, Palladino shows, draw their power from public charters-agreements that allow corporations to enjoy all manner of operational benefits. In return, corporations are meant to innovate for the betterment of the societies that support them-to do what less-endowed operations cannot. That debt, increasingly wielded for stock buybacks and bonuses in the era of shareholder primacy, is not being repaid. Palladino theorizes a modern corporation that plays the role it was intended and delivers social and economic good in the process. Good Company is both an expert introduction to the political economy of the firm-as it was, as it is, as it can be-and a calibrating examination of how public policy can shape companies, and societies, for the better"--
Download or read book The Divine Right of Capital written by Marjorie Kelly and published by . This book was released on 2015-12-17 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Updated paperback edition includes a new chapter and a Reader's Guide â [ Explores the real causes of the Enron fiasco and other recent corporate scandals â [ Explodes the myth that the stock market is ''''''''democratizing'''''''' wealth â [ Gives practical guidance to help employees and communities change corporate governance and unfetter the genius of the free market. Wealth inequality, corporate welfare, and industrial pollution are symptoms - the fevers and chills of the economy. The underlying illness, says Business Ethics magazine founder Marjorie Kelly, is shareholder primacy: the corporate drive to make profits for shareholders, no matter who pays the cost. In The Divine Right of Capital, Kelly argues that focusing on the interests of stockholders to the exclusion of everyone else's interests is a form of discrimination based on property or wealth. She shows how this bias is held by our institutional structures, much as they once held biases against blacks and women. The Divine Right of Capital exposes six aristocratic principles that corporations are built on, principles that we would never accept in our modern democratic society but which we accept unquestioningly in our economy. Wealth bias is a holdover from our pre - democratic past. It has enabled shareholders to become a kind of economic aristocracy. Kelly shows how to design more equitable alternatives - new property rights, new forms of corporate governance, new ways of looking at corporate performance - that build on both free - market and democratic principles. We think of shareholder primacy as the natural law of the free market, much as our forebears thought of monarchy as the most natural form of government. But in The Divine Right of Capital, Kelly brilliantly demonstrates that it is no more ''''''''natural'''''''' than any other human creation. People designed this system and people can change it. We need a change of mind as profound as that of the American Revolution. We must question the legitimacy of a system that gives the wealthy few - the ten percent of Americans who own ninety percent of all stock - a disproportionate power over the many. In so doing, we can fulfill the democratic principles of our nation not only in the political sphere, but in the economic sphere as well.
Download or read book Quality Shareholders written by Lawrence A. Cunningham and published by Columbia University Press. This book was released on 2020-11-03 with total page 215 pages. Available in PDF, EPUB and Kindle. Book excerpt: Anyone can buy stock in a public company, but not all shareholders are equally committed to a company’s long-term success. In an increasingly fragmented financial world, shareholders’ attitudes toward the companies in which they invest vary widely, from time horizon to conviction. Faced with indexers, short-term traders, and activists, it is more important than ever for businesses to ensure that their shareholders are dedicated to their missions. Today’s companies need “quality shareholders,” as Warren Buffett called those who “load up and stick around,” or buy large stakes and hold for long periods. Lawrence A. Cunningham offers an expert guide to the benefits of attracting and keeping quality shareholders. He demonstrates that a high density of dedicated long-term shareholders results in numerous comparative and competitive advantages for companies and their managers, including a longer runway to execute business strategy and a loyal cohort against adversity. Cunningham explores dozens of corporate practices and policies—such as rational capital allocation, long-term performance metrics, and a shareholder orientation—that can help shape the shareholder base and bring in committed owners. Focusing on the benefits for corporations and their investors, he reveals what draws quality shareholders to certain companies and what it means to have them in an investor base. This book is vital reading for investors, executives, and directors seeking to understand and attract the kind of shareholders that their companies need.
Download or read book Summary of Lynn Stout s The Shareholder Value Myth written by Everest Media, and published by Everest Media LLC. This book was released on 2022-05-10T22:59:00Z with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt: Please note: This is a companion version & not the original book. Sample Book Insights: #1 The Deepwater Horizon disaster was a tragedy on an epic scale not only for the rig and the eleven people who died on it, but also for the corporation BP. By June of 2010, BP had suspended paying its regular dividends, and its stock had plummeted to less than $30 per share. #2 The Deepwater Horizon disaster is just one example of a larger problem that afflicts many public corporations today. That problem is called shareholder value thinking, and it says that public corporations exist to maximize shareholders’ wealth. #3 The 1990s saw the emergence of the idea that corporations should serve only shareholder wealth, which was reflected in stock price. This idea became dominant by the turn of the millennium. #4 The past dozen years have seen a daisy chain of corporate disasters, from massive frauds at Enron, HealthSouth, and Worldcom in the early 2000s to the near-failure and costly taxpayer bailout of many of America’s largest financial institutions in 2008.
