Tuesday, February 27, 2007
Maximizing Shareholder Value
Does maximizing shareholder value require treating employees well?
if doing so is necessary to retain employees capable of boosting shareholder value; otherwise the ethical thing to do is outsource, terminate, and exploit. Maybe folks have gotten it twisted as to what ethics means in a business context. Real business ethics is an ordered list of concerns:
You may also note that in situations of bankruptcy, the list is the exact opposite. For folks who want to increase the perception of business ethics then the best way to do so is to become stockholders. If employees are the primary shareholders and they can get rid of non-participating outside shareholders to the fullest extent possible then the perception of ethics increases dramatically.
| | View blog reactionsif doing so is necessary to retain employees capable of boosting shareholder value; otherwise the ethical thing to do is outsource, terminate, and exploit. Maybe folks have gotten it twisted as to what ethics means in a business context. Real business ethics is an ordered list of concerns:
- Employees (most critical to corporate health)
- Customers (secondarily critical)
- Creditors and Financial backers (Least critical and also least involved)
You may also note that in situations of bankruptcy, the list is the exact opposite. For folks who want to increase the perception of business ethics then the best way to do so is to become stockholders. If employees are the primary shareholders and they can get rid of non-participating outside shareholders to the fullest extent possible then the perception of ethics increases dramatically.
