Shareholder value maximization and competitiveness are at the core of today’s business and economic policy. Companies seek to improve their productivity and try to gain competitive advantage. But these efforts often produce negative effects on various stakeholders at home and abroad. Competitiveness in most cases produces monetary results for the shareholders at the expense of other stakeholders. Based on the arguments developed by the the Group of Lisbon, the late Sumantra Ghoshal of London Business School, and Canadian management guru Henry Mintzberg, we criticize the one-dimensional pursuit of profit and the competitiveness of contemporary business. We contend that the exclusive focus on monetary results (especially short-term shareholder value) could produce negative results for nature, society, and future generations, and finally be self-defeating for business itself. We argue for a collaborative approach, one which goes beyond the current constraints of the business-as-usual perspective and provides a more reliable framework for broad values-creation processes.

Engaging in progressive entrepreneurship

TENCATI, ANTONIO;PERRINI, FRANCESCO;ZSOLNAI, LASZLO
2009

Abstract

Shareholder value maximization and competitiveness are at the core of today’s business and economic policy. Companies seek to improve their productivity and try to gain competitive advantage. But these efforts often produce negative effects on various stakeholders at home and abroad. Competitiveness in most cases produces monetary results for the shareholders at the expense of other stakeholders. Based on the arguments developed by the the Group of Lisbon, the late Sumantra Ghoshal of London Business School, and Canadian management guru Henry Mintzberg, we criticize the one-dimensional pursuit of profit and the competitiveness of contemporary business. We contend that the exclusive focus on monetary results (especially short-term shareholder value) could produce negative results for nature, society, and future generations, and finally be self-defeating for business itself. We argue for a collaborative approach, one which goes beyond the current constraints of the business-as-usual perspective and provides a more reliable framework for broad values-creation processes.
2009
9780230219878
L. Zsolnai, A. Tencati
The future international manager: a vision of the roles and duties of management
Prima edizione
Tencati, Antonio; Perrini, Francesco; N., Hofstra; Zsolnai, Laszlo
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11565/3714108
 Attenzione

Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo

Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 1
  • ???jsp.display-item.citation.isi??? ND
social impact