Free worldwide shipping on bespoke jeans

A Different Type of Company


Let me get wonky with you, but for a good cause. I want FITTED to be a different type of company.  One that values its employees and customers, as much as its "investors" (that's just me, by the way), and doesn't just pay lip service to that idea. CSR will always be part a marketing function if your board is composed of shareholders. 

ON SHAREHOLDER VALUE

Modern business theory is based on the idea that the purpose of a corporation is to "maximize shareholder value". That's become the conventional wisdom since the 1980s, and though some people have begun to question it, it's difficult to overstate how central it is to business today.  The term is embedded in corporate charters; boards make decisions based on it; CEOs are rewarded for carrying it out.  It is business's north star.

There have been positive effects because of it.  In particular, productivity and share prices have risen dramatically.  The S&P 500 has increased 2,000% since 1980, and US worker productivity has grown 70%.  Other factors have contributed to these secular trends, but maximization of shareholder value has played a central - if not the central role.  The good news is there's been a substantial amount of wealth creation.

The bad news is these gains have been highly concentrated.  Yes, a lot of people carp about income inequality - and there's a good reason for that. Over the same period since 1980, workers' pay has grown only 11% while CEO pay has ballooned 1,000%.  And though corporate cash reserves are near record levels, stock market gains have primarily gone to the wealthiest 10% of Americans, who own 80-90% of stocks and mutual funds.

Perhaps this shouldn't be surprising.  If companies are being run to maximize shareholder value, then shareholders, and the managers they appoint, should be expected to benefit.  But the long-term effects are devastating.  As workers miss out on meaningful wage growth, a less vibrant middle class means weaker consumption and slower overall growth.  A top heavy economy will come back to bite business.

But even more concerning, rising income inequality strains our social fabric. It's incredible that both presidential campaigns on the left and right - Sanders and Trump - have tapped the same populist anger and are running on similar anti-trade platforms, which is a proxy for workers' frustrations.  Free trade can lift a lot of boats, but without an underlying commitment to retain or retrain American workers, they have suffered disproportionately.  And capital doesn't care about labor like that.

There are other pernicious day to day effects, too.  From the perspective of shareholder value, workers are an expense.  That's just a fact.  And like any expense, that line item should be minimized and its output maximized - which helps explain why employees are always being asked to do more while wages have remained relatively flat.  It also helps explain my experience in finance when I was viewed as a productive asset, and treated more like a machine than a human being.

To summarize, over the last 35 years, maximizing shareholder value has turbo-charged growth, but not everyone has been on board the rocket ship.

And that, I believe, is the theory's flaw: In an organization with multiple stakeholders, it focuses on a single constituency.  How can a company be fully aligned if its values - which almost always speak about the importance of people - aren't aligned with its purpose?  Sometimes being true to your values means not maximizing shareholder value.  There are some things that are just more important than profits.
 

ON STAKEHOLDER VALUE

I believe business needs an organizing principle that aligns all stakeholders - investors, employees and the broader community - behind a common goal.  The purpose of this more holistic form of capitalism would be for the entire company to prosper, not just a single part.  As such, a company would be organized to maximize stakeholder value.  And to give this principle true power, all stakeholders would be represented at the highest level possible: the board of directors.

There are pros and cons to this approach. On the positive side, workers would benefit.  Employee input can be integrated into management decisions from bottom up and the top down, which would help improve culture, balance remuneration and strengthen strategic thinking.  A stronger voice would mean happier employees, and happy employees are good for customers - and productivity.

Furthermore, a more balanced board would help free management from shareholders' short term bias and empower them to plan for the future. This would result in more consistent returns, better long term performance and less market volatility, especially as other companies adopt this approach.

On the negative side, top management and shareholders would give up their absurd, over the top, there's-no-way-to-spend-this-amount-of-money returns.  They'd trade in the motorboat for a stronger, steadier ship.

There are other challenges.  Getting the balance of power right in a stakeholder led organization is critical.  The board should not be divided evenly among each stakeholder.  A business needs to be competitive, which means greater representation for shareholders.  But employees and the broader community would need real power.

Also, to ensure that it doesn't ossify into separate groups, the board would have to be true to the underlying purpose of the company.  They would have to consider the whole before its individual parts. 

And measuring stakeholder value is harder.  While the same financial metrics can be used for shareholders, intelligent measures for employee happiness and customer satisfaction would need to be developed.  But if done right, they could produce valuable information that most managers don't have to today.
 

GETTING DOWN TO BUSINESS

Maximizing stakeholder value is not a great panacea for business.  The business life cycle still exists - companies will be born, mature, and die.  But it can make for a healthier life.  It could even make for a healthier death.  Imagine a stakeholder board renegotiating golden parachutes to help laid off employees find work and pay for retraining programs, or ensuring a new drug company doesn't engage in profiteering.  It's just the right thing to do.

I don't want to come across as naive or having all this figured out.  I am not and I don't.  But what I'm arguing is that there has to be a better way than what we've got today.  One which values people and the bottom line, empowers business to succeed removes the conflict that's inherent within the system today.

I think that better way starts by aligning all stakeholders behind a common purpose, which is for the entire company to succeed, and that is embodied in the shift from maximizing shareholder value to maximizing stakeholder value.  Only then do you have a company that is internally aligned.

It's important to lay a theoretical framework, but these are just words - until they aren't.  That's the challenge in front of us today.  That in addition to creating better clothes, we have an opportunity to build a different type of company.


9 comments


  • 온라인카지노

    klayline4@gmail.com
    8/30
    https://bit.ly/3IrPU5E
    카지노사이트 https://joinlive77.com/
    바카라사이트 https://joinlive77.com/
    온라인카지노 https://joinlive77.com/
    온라인바카라 https://joinlive77.com/
    온라인슬롯사이트 https://joinlive77.com/
    카지노사이트게임 https://joinlive77.com/
    카지노사이트검증 https://joinlive77.com/
    카지노사이트추천 https://joinlive77.com/
    안전카지노사이트 https://joinlive77.com/
    안전카지노사이트도메인 https://joinlive77.com/
    안전한 카지노사이트 추천 https://joinlive77.com/
    바카라사이트게임 https://joinlive77.com/
    바카라사이트검증 https://joinlive77.com/
    바카라사이트추천 https://joinlive77.com/
    안전바카라사이트 https://joinlive77.com/
    안전바카라사이트도메인 https://joinlive77.com/
    안전한 바카라사이트 추천 https://joinlive77.com/
    https://www.google.tn/url?sa=t&url=https://joinlive77.com/
    https://www.google.tn/url?sa=t&url=https://joinlive77.com/
    https://www.google.tn/url?sa=t&url=https://joinlive77.com/
    https://www.google.tn/url?sa=t&url=https://joinlive77.com/
    https://www.google.tn/url?sa=t&url=https://joinlive77.com/
    https://www.google.tn/url?sa=t&url=https://joinlive77.com/
    https://www.google.tn/url?sa=t&url=https://joinlive77.com/
    https://www.google.tn/url?sa=t&url=https://joinlive77.com/
    https://www.google.tn/url?sa=t&url=https://joinlive77.com/
    https://www.google.tn/url?sa=t&url=https://joinlive77.com/
    https://www.google.tn/url?sa=t&url=https://joinlive77.com/
    https://www.google.tn/url?sa=t&url=https://joinlive77.com/
    https://www.google.tn/url?sa=t&url=https://joinlive77.com/
    https://www.google.tn/url?sa=t&url=https://joinlive77.com/
    https://www.google.tn/url?sa=t&url=https://joinlive77.com/
    https://www.google.tn/url?sa=t&url=https://joinlive77.com/
    https://www.google.tn/url?sa=t&url=https://joinlive77.com/
    https://www.google.tn/url?sa=t&url=https://joinlive77.com/
    https://www.google.tn/url?sa=t&url=https://joinlive77.com/
    https://www.google.tn/url?sa=t&url=https://joinlive77.com/
    https://www.google.tn/url?sa=t&url=https://joinlive77.com/
    https://www.google.tn/url?sa=t&url=https://joinlive77.com/
    https://www.google.tn/url?sa=t&url=https://joinlive77.com/
    https://www.google.tn/url?sa=t&url=https://joinlive77.com/
    https://www.google.tn/url?sa=t&url=https://joinlive77.com/
    https://www.google.tn/url?sa=t&url=https://joinlive77.com/
    https://www.google.tn/url?sa=t&url=http://casinostory.link/index.php/2022/08/29/how-to-use-your-phone-bill-to-pay-for-casino-games/
    https://www.google.tn/url?sa=t&url=http://casinostory.link/index.php/2022/08/29/how-to-use-your-phone-bill-to-pay-for-casino-games/
    https://www.google.tn/url?sa=t&url=http://casinostory.link/index.php/2022/08/29/how-to-use-your-phone-bill-to-pay-for-casino-games/
    https://www.google.tn/url?sa=t&url=http://casinostory.link/index.php/2022/08/29/how-to-use-your-phone-bill-to-pay-for-casino-games/
    https://www.google.tn/url?sa=t&url=http://casinostory.link/index.php/2022/08/29/how-to-use-your-phone-bill-to-pay-for-casino-games/
    https://www.google.tn/url?sa=t&url=http://casinostory.link/index.php/2022/08/29/how-to-use-your-phone-bill-to-pay-for-casino-games/
    https://www.google.tn/url?sa=t&url=http://casinostory.link/index.php/2022/08/29/how-to-use-your-phone-bill-to-pay-for-casino-games/
    https://www.google.tn/url?sa=t&url=http://casinostory.link/index.php/2022/08/29/how-to-use-your-phone-bill-to-pay-for-casino-games/
    https://www.google.tn/url?sa=t&url=http://casinostory.link/index.php/2022/08/29/how-to-use-your-phone-bill-to-pay-for-casino-games/
    https://www.google.tn/url?sa=t&url=http://casinostory.link/index.php/2022/08/29/how-to-use-your-phone-bill-to-pay-for-casino-games/
    https://www.google.tn/url?sa=t&url=http://casinostory.link/index.php/2022/08/29/how-to-use-your-phone-bill-to-pay-for-casino-games/
    https://www.google.tn/url?sa=t&url=http://casinostory.link/index.php/2022/08/29/how-to-use-your-phone-bill-to-pay-for-casino-games/
    https://www.google.tn/url?sa=t&url=http://casinostory.link/index.php/2022/08/29/how-to-use-your-phone-bill-to-pay-for-casino-games/
    https://www.google.tn/url?sa=t&url=http://casinostory.link/index.php/2022/08/29/how-to-use-your-phone-bill-to-pay-for-casino-games/
    https://www.google.tn/url?sa=t&url=http://casinostory.link/index.php/2022/08/29/how-to-use-your-phone-bill-to-pay-for-casino-games/
    https://www.google.tn/url?sa=t&url=http://casinostory.link/index.php/2022/08/29/how-to-use-your-phone-bill-to-pay-for-casino-games/
    https://www.google.tn/url?sa=t&url=http://casinostory.link/index.php/2022/08/29/how-to-use-your-phone-bill-to-pay-for-casino-games/
    https://www.google.tn/url?sa=t&url=http://casinostory.link/index.php/2022/08/29/how-to-use-your-phone-bill-to-pay-for-casino-games/
    https://www.google.tn/url?sa=t&url=http://casinostory.link/index.php/2022/08/29/how-to-use-your-phone-bill-to-pay-for-casino-games/
    https://www.google.tn/url?sa=t&url=http://casinostory.link/index.php/2022/08/29/how-to-use-your-phone-bill-to-pay-for-casino-games/
    https://www.google.tn/url?sa=t&url=http://casinostory.link/index.php/2022/08/29/how-to-use-your-phone-bill-to-pay-for-casino-games/
    https://www.google.tn/url?sa=t&url=http://casinostory.link/index.php/2022/08/29/how-to-use-your-phone-bill-to-pay-for-casino-games/
    https://www.google.tn/url?sa=t&url=http://casinostory.link/index.php/2022/08/29/how-to-use-your-phone-bill-to-pay-for-casino-games/
    https://www.google.tn/url?sa=t&url=http://casinostory.link/index.php/2022/08/29/how-to-use-your-phone-bill-to-pay-for-casino-games/
    https://www.google.tn/url?sa=t&url=http://casino-blog.click/index.php/2022/08/24/the-ultimate-guide-to-blackjack/
    https://www.google.tn/url?sa=t&url=http://casino-blog.click/index.php/2022/08/24/the-ultimate-guide-to-blackjack/
    https://www.google.tn/url?sa=t&url=http://casino-blog.click/index.php/2022/08/24/the-ultimate-guide-to-blackjack/
    https://www.google.tn/url?sa=t&url=http://casino-blog.click/index.php/2022/08/24/the-ultimate-guide-to-blackjack/
    https://www.google.tn/url?sa=t&url=http://casino-blog.click/index.php/2022/08/24/the-ultimate-guide-to-blackjack/
    https://www.google.tn/url?sa=t&url=http://casino-blog.click/index.php/2022/08/24/the-ultimate-guide-to-blackjack/
    https://www.google.tn/url?sa=t&url=http://casino-blog.click/index.php/2022/08/24/the-ultimate-guide-to-blackjack/
    https://www.google.tn/url?sa=t&url=http://casino-blog.click/index.php/2022/08/24/the-ultimate-guide-to-blackjack/
    https://www.google.tn/url?sa=t&url=http://casino-blog.click/index.php/2022/08/24/the-ultimate-guide-to-blackjack/
    https://www.google.tn/url?sa=t&url=http://casino-blog.click/index.php/2022/08/24/the-ultimate-guide-to-blackjack/
    https://www.google.tn/url?sa=t&url=http://casino-blog.click/index.php/2022/08/24/the-ultimate-guide-to-blackjack/
    https://www.google.tn/url?sa=t&url=http://casino-blog.click/index.php/2022/08/24/the-ultimate-guide-to-blackjack/
    https://www.google.tn/url?sa=t&url=http://casino-blog.click/index.php/2022/08/24/the-ultimate-guide-to-blackjack/
    https://www.google.tn/url?sa=t&url=http://casino-blog.click/index.php/2022/08/24/the-ultimate-guide-to-blackjack/
    https://www.google.tn/url?sa=t&url=http://casino-blog.click/index.php/2022/08/24/the-ultimate-guide-to-blackjack/
    https://www.google.tn/url?sa=t&url=http://casino-blog.click/index.php/2022/08/24/the-ultimate-guide-to-blackjack/
    https://www.google.tn/url?sa=t&url=http://casino-blog.click/index.php/2022/08/24/the-ultimate-guide-to-blackjack/
    https://www.google.tn/url?sa=t&url=http://casino-blog.click/index.php/2022/08/24/the-ultimate-guide-to-blackjack/
    https://www.google.tn/url?sa=t&url=http://casino-blog.click/index.php/2022/08/24/the-ultimate-guide-to-blackjack/
    https://www.google.tn/url?sa=t&url=http://casino-blog.click/index.php/2022/08/24/the-ultimate-guide-to-blackjack/
    https://www.google.tn/url?sa=t&url=http://casino-blog.click/index.php/2022/08/24/the-ultimate-guide-to-blackjack/
    https://www.google.tn/url?sa=t&url=http://casino-blog.click/index.php/2022/08/24/the-ultimate-guide-to-blackjack/


  • 크레이지슬롯먹튀 https://www.bewin777.com 카지노주소

    ふひのそぴゆ 해외온라인카지노 온라인슬롯사이트 비바카지노 바카라룰 카심바슬롯 코인카지노 포텐슬롯주소 안전카지노 온라인카지노 바카라사이트 포텐슬롯주소 카심바슬롯 더킹카지노먹튀 비바카지노주소 우리카지노계열사 잭파시티먹튀 카심바주소 스핀카지노먹튀 포텐슬롯 아바타바카라 카지노사이트 해외온라인카지노 크레이지슬롯먹튀 https://www.bewin777.com 카지노주소 카심바슬롯잭팟 온라인카지노 카지노사이트주소 카지노슬롯머신 식보게임 moroamee234 온라인바카라 생중계카지노 예스카지노 바카라타이 포텐슬롯사이트 플레이슬롯 홈카지노 룰렛추천 에그벳먹튀 강원랜드다이사이 포텐슬롯 온라인카지노 실시간바카라사이트 카심바카지노 슬롯사이트 크레이지슬롯먹튀 https://www.bewin777.com 카지노주소 더킹카지노먹튀 온라인카지노 007카지노 더나인카지노먹튀 슬롯머신 https://www.bewin777.com 아바타바카라 파라오카지노 카심바슬롯 moroamee234 카지노게임사이트 카지노게임 바카라사이트 해외온라인카지노 비바카지노 생중계바카라 홈카지노 에그벳먹튀 트럼프카지노먹튀 카심바슬롯 포텐슬롯주소 Q카지노 온라인바카라 크레이지슬롯먹튀 https://www.bewin777.com 카지노주소 헤븐카지노 해외슬롯사이트 엠카지노 실시간카지노 카심바슬롯 https://www.bewin777.com 카지노사이트 슬롯사이트 파라오카지노먹튀 moroamee234 바카라규칙 온라인슬롯사이트 생활바카라 강원랜드다이사이 얀카지노 세부카지노 트럼프카지노 슬롯카지노 포텐슬롯사이트 온라인블랙잭 카심바코리아 카지노사이트 필리핀카지노 카지노사이트추천 크레이지슬롯먹튀 https://www.bewin777.com 카지노주소 온라인도박사이트 룰렛게임 카지노게임사이트 https://www.bewin777.com 온라인카지노 카지노검증사이트 카지노사이트 moroamee234 카심바슬롯 바카라사이트 생중계바카라 よみずゃゑら

    https://www.bewin777.com
    https://www.dewin999.com
    https://www.ktwin247.com
    https://www.nikecom.net
    https://www.netflixcom.net


  • https://www.Instagrme.net/ - 온라인 다이사이

    https://www.Instagrme.net/ – 맥스카지노,카지노사이트,온라인바카라,바카라사이트,인터넷카지노
    https://Instagrme.net/ – 카지노주소
    https://Instagrme.net/ – 바카라게임
    https://Instagrme.net/ – 안전카지노
    https://Instagrme.net/ – 카지노하는곳
    https://Instagrme.net/ – 카지노추천
    https://Instagrme.net/ – 비바카지노
    https://Instagrme.net/ – 라이브카지노
    https://Instagrme.net/ – 실시간카지노
    https://Instagrme.net/ – 퀸즈슬롯
    https://Instagrme.net/ – 온라인카지노
    https://Instagrme.net/onlinebaccarat/ – 온라인바카라
    https://Instagrme.net/mobilecasino/ – 모바일카지노
    https://Instagrme.net/internetslotmachine/ – 인터넷슬롯머신
    https://Instagrme.net/ourcasino/ – 우리카지노계열
    https://Instagrme.net/baccarat-strategy/ – 바카라 전략
    https://Instagrme.net/baccaratsite/ – 바카라사이트

    youube.me
    gamja888.com
    instagrme.com
    youubbe.me
    Instagrm.me
    instagrme.site
    instagrme.live
    naverom.me
    facebookom.me


  • jotlylalt

    cialis priligy[/url]


Leave a comment