The Shareholder Value Myth

The "Shareholder Value Myth" challenges the idea that a company's primary goal should be maximizing profits for shareholders. It argues that focusing solely on shareholders can lead to short-term thinking, neglecting other important stakeholders like employees, customers, and communities. This narrow focus can harm long-term company health and societal well-being. Instead, effective management should balance various interests, promoting sustainable growth and broader value creation. The myth persists because it simplifies complex business realities, but true success involves responsible practices that benefit all stakeholders, not just shareholders.