ABSTRACT

Shareholder value has been elevated to a place in modern management theory that outweighs its worth (Stout 2012). It does not deserve a section in this book on strategy except to debunk it and take it out of the strategic equation. Corporations make money for shareholders, of course, but this should be part of much wider responsibilities. Focussing on shareholder value has been one of the dimmest ideas ever introduced, encouraging executives to focus on manipulating the figures to satisfy the short time horizon of investment managers. Corporations require a purpose that meshes with the needs of society cementing the corporation at the foundations of a sustainable and resilient economy; shareholder value does little to support this purpose.