Is there a difference between a “stakeholding” corporation and one focussed on shareholder value?
Yes: by treating customers and employees as ends, not means, companies do well by doing good. What is a stakeholding corporation? The debate is between those who think that Barclays, Glaxo and BT exist to maximise returns to their shareholders: and those who think they have wider, but yet more specific, objectives. They should seek to be outstanding businesses in their field. The corporate objective of Barclays is to be a great bank: Glaxo should aspire to be a fine drug company: and BT’s purpose is to be an effective provider of telecommunications services. And what do we mean by a good business? A successful bank, pharmaceutical company or telecoms business is one which meets the legitimate, and changing, needs of its many stakeholders. It delivers quality and value to its customers, provides a secure and rewarding environment for its employees, develops productive partnerships with its suppliers, earns high returns for its investors, and deserves and receives the respect of the comm
