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4 Business Ideas That Changed the World: Shareholder Value
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When? This feed was archived on December 25, 2022 00:46 (). Last successful fetch was on November 22, 2022 15:45 ()
Why? Toimeton syöte status. Palvelimemme eivät voineet hakea voimassa olevaa podcast-syötettä tietyltä ajanjaksolta.
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Manage episode 344774918 series 112851
The idea that maximizing shareholder value takes legal and practical precedence above all else first came to prominence in the 1970s. The person who arguably did the most to advance the idea was the business school professor Michael Jensen, who wrote in Harvard Business Review and elsewhere that CEOs pursue their own interests at the expense of shareholders’ interests. Among other things, he argued for stock-based incentives that would neatly align CEO and shareholder interests.
Shareholder primacy rapidly became business orthodoxy. It dramatically changed how and how much executives are compensated. And it arguably distorted capitalism for a generation or more. Critics have long charged that maximizing shareholder value ultimately just encourages CEOs and shareholders to feather their own nests at the expense of everything else: jobs, wages and benefits, communities, and the environment.
The past few years have seen a backlash against shareholder capitalism and the rise of so-called stakeholder capitalism. After reigning supreme for half a century, is shareholder value maximization on its way out?
4 Business Ideas That Changed the World is a special series from HBR IdeaCast. Each week, an HBR editor talks to world-class scholars and experts on the most influential ideas of HBR’s first 100 years, such as disruptive innovation, scientific management, and emotional intelligence.
Discussing shareholder value with HBR editor in chief Adi Ignatius are:
- Lynn Paine, professor at Harvard Business School
- Mihir Desai, professor at Harvard Business School
- Carola Frydman, professor at Kellogg School of Management
Further reading:
- HBR: CEO Incentives—It’s Not How Much You Pay, But How, by Michael C. Jensen and Kevin J. Murphy
- New York Times: A Friedman doctrine‐- The Social Responsibility Of Business Is to Increase Its Profits, by Milton Friedman
- HBR: The Error at the Heart of Corporate Leadership, by Joseph L. Bower and Lynn S. Paine
- U.S. Business Roundtable: Statement on the Purpose of a Corporation, 2019
653 jaksoa
Arkistoidut sarjat ("Toimeton syöte" status)
When? This feed was archived on December 25, 2022 00:46 (). Last successful fetch was on November 22, 2022 15:45 ()
Why? Toimeton syöte status. Palvelimemme eivät voineet hakea voimassa olevaa podcast-syötettä tietyltä ajanjaksolta.
What now? You might be able to find a more up-to-date version using the search function. This series will no longer be checked for updates. If you believe this to be in error, please check if the publisher's feed link below is valid and contact support to request the feed be restored or if you have any other concerns about this.
Manage episode 344774918 series 112851
The idea that maximizing shareholder value takes legal and practical precedence above all else first came to prominence in the 1970s. The person who arguably did the most to advance the idea was the business school professor Michael Jensen, who wrote in Harvard Business Review and elsewhere that CEOs pursue their own interests at the expense of shareholders’ interests. Among other things, he argued for stock-based incentives that would neatly align CEO and shareholder interests.
Shareholder primacy rapidly became business orthodoxy. It dramatically changed how and how much executives are compensated. And it arguably distorted capitalism for a generation or more. Critics have long charged that maximizing shareholder value ultimately just encourages CEOs and shareholders to feather their own nests at the expense of everything else: jobs, wages and benefits, communities, and the environment.
The past few years have seen a backlash against shareholder capitalism and the rise of so-called stakeholder capitalism. After reigning supreme for half a century, is shareholder value maximization on its way out?
4 Business Ideas That Changed the World is a special series from HBR IdeaCast. Each week, an HBR editor talks to world-class scholars and experts on the most influential ideas of HBR’s first 100 years, such as disruptive innovation, scientific management, and emotional intelligence.
Discussing shareholder value with HBR editor in chief Adi Ignatius are:
- Lynn Paine, professor at Harvard Business School
- Mihir Desai, professor at Harvard Business School
- Carola Frydman, professor at Kellogg School of Management
Further reading:
- HBR: CEO Incentives—It’s Not How Much You Pay, But How, by Michael C. Jensen and Kevin J. Murphy
- New York Times: A Friedman doctrine‐- The Social Responsibility Of Business Is to Increase Its Profits, by Milton Friedman
- HBR: The Error at the Heart of Corporate Leadership, by Joseph L. Bower and Lynn S. Paine
- U.S. Business Roundtable: Statement on the Purpose of a Corporation, 2019
653 jaksoa
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