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The rules of business are changing dramatically. The Aspen Institute's Judy Samuelson describes the profound shifts in attitudes and mindsets that are redefining our notions of what constitutes business success.
Decades of teaching and reinforcing shareholder return as the single objective function of a well-run business has resulted in corporations focused entirely on quarterly profits and rewarding short-term-oriented investors. This has been at the expense of employees, long-term vision, and stewardship of natural resources. But we are now starting to see social forces and public expectations giving shape to a new kind of business ethic, as reflected in the Business Roundtable's 2019 Statement on the Purpose of a Corporation.
Judy Samuelson, vice president at the Aspen Institute, lays out six new rules that can help a business free itself from the tyranny of shareholder primacy and become an active force for solving the world's problems:
1. Reputation, trust, loyalty, and other intangibles drive real business value
2. Businesses serve many objectives beyond shareholder value
3. Corporate responsibilities extend far outside the business gates
4. Employees are allies, not expenses
5. Culture is king and talent rules
6. Co-create with your competitors to win
These new rules create real value and have the staying power to reverse decades of value-destroying decisions in business.
The rules of business are changing dramatically. The Aspen Institute's Judy Samuelson describes the profound shifts in attitudes and mindsets that are redefining our notions of what constitutes business success.
Decades of teaching and reinforcing shareholder return as the single objective function of a well-run business has resulted in corporations focused entirely on quarterly profits and rewarding short-term-oriented investors. This has been at the expense of employees, long-term vision, and stewardship of natural resources. But we are now starting to see social forces and public expectations giving shape to a new kind of business ethic, as reflected in the Business Roundtable's 2019 Statement on the Purpose of a Corporation.
Judy Samuelson, vice president at the Aspen Institute, lays out six new rules that can help a business free itself from the tyranny of shareholder primacy and become an active force for solving the world's problems:
1. Reputation, trust, loyalty, and other intangibles drive real business value
2. Businesses serve many objectives beyond shareholder value
3. Corporate responsibilities extend far outside the business gates
4. Employees are allies, not expenses
5. Culture is king and talent rules
6. Co-create with your competitors to win
These new rules create real value and have the staying power to reverse decades of value-destroying decisions in business.
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