ABSTRACT
We explore the role of the corporate leader in creating value for stakeholders throughout three eras: one of naïve idealism, one of naïve cynicism, and an emerging era of rugged idealism. We explain how the role of the corporate leader and society’s perceptions of this role have changed and how leaders may now be able to create shared value for all stakeholders. Cases of leaders who created value or merely distributed value in each era are explored. Although there is no framework yet for how leaders can create value for all stakeholders, we note that a key theme among the companies illustrated is that each was able to align stakeholders’ interests to a degree that made the satisfaction of multiple needs not only possible, but profitable. We conclude by emphasizing the role of business schools in socializing business leaders and how these schools, by incorporating a more stakeholder-centric approach in their curricula, research, and culture, can develop leaders who are willing and able to address the diverse values and interests of their companies’ stakeholders.
If you want me to do things only for ROI reasons, you should get out of this stock.
Tim Cook, CEO of Apple, February 28, 2014
