Shareholder value fundamentalists maintain that a maniacal focus on profits is and should be the central focus of all private sector enterprise. Their credo trumps all questions of family, social, political, environmental, technological, medical, legal and other issues of values with the single question: will it promote or detract from financial/economic value?
Theirs is a fundamentalism every bit as destructive of the planet as any religious or other form of ‘single answer’ ideology.
Not only does this extremisim hollow out and threaten the sustainability of humane society, it also inevitably undercuts shareholder value itself. Only blended values strategies can save shareholder value from these extremists — whose ideology, unfortunately, pervades executive suites and boardrooms across the globe.
The absurdity of shareholder value fundamentalism is well captured in this item from the BBC. Here’s the sub-headline: “Many of the world’s 25 biggest food firms only pay lip service to their duty to help fight the global diet crisis, a report on the issue says.”
Obesity and other eating disorders are at crisis proportions in many areas and among many groups. Ought food companies care about the health of customers? All of us — and them — would quickly agree that food companies ought not put poison in their product. But in our shareholder value fundamentalist culture, the only thing food companies ought not do is ‘break a law’ (and, it’s fair to report that even then, the too often ruling ethic is ‘don’t get caught breaking a law’). Anything goes so long as it adds to the bottom line.
All private sector enterprises must have a positive bottom line. All private sector enterprises MUST generate returns for those who provide capital. Shareholder value is essential. But shareholder value fundamentalism is a sociopathic ideology that ought not be confused with the necessary idea that return on capital provided is critical.
Laws prohibit poison in food. But only ethics embraced by executives and employees of food companies — that are strong, predictable shared values about ‘how we do things around here’ — can ever turn around this situation where major food companies endanger the health of us and our children through ‘poison by other means’.
If you work at a food company — or if you know anyone who does — ask yourself or them, “Is this what you stand for? Selling food that is unhealthy? Are those the predictable beliefs and behaviors — shared values — that you want your children to remember you stood for?”