‘Shareholder value’ drives much short-termism and unnecessary destruction. Has anyone thought of a meme to displace it?
Rights holder value; where all capitals are taking into account including natural, social, etc
It needs simplification. It is the value of the shares, (which must be held by their owner, so why include this).
It’s not just the ‘word’ that needs a (re)validation, is a wider understanding of ‘economy’ and the relation of all concepts seen from the ‘normal’ (society) perspective. We come from a period where this perspective was ‘common’. We are now in a world where ‘the competion of words’ to frame an private position (business module, revenue model) over the common interest…
It is time for a rethink of our purpose (life), based on real time, real world (RT/RW) common processes. We must make the change from a investors driven ‘special purpose’ economy to a ‘common purpose’ economy. Understanding of the primary, secondary and further order (RT/RW) processes must reposition ‘economy’ in the right process order.
That’s how I understand Kate’s doughnut…now let’s bake new economy…
There seem to be two issues. First, is “shareholder value” in some sense too narrow, eg too short-term or too focused on shareholders to the exclusion of other stakeholders (eg including the ultimate beneficiaries of shares such as future pensioners).
The second is a name for the concept that is sufficiently sticky to compete with “shareholder value” in the same way that KR’s doughnut competes with the demand curve.
Thoughts on all questions/ideas appreciated.
Interesting to meditate on the concept “share”, which really should be at the core of everything, and has become a bit perverted, it seems to me.
This notion that one can break off a piece of the whole and get some individual (private) benefit from that seems to be at the root of the wrong thinking that has got us where we are.
We’re only going to get out of this mess if we start to realize that we share it all–for better or for worse. So achieving the balance called for by doughnut economics really would give proper meaning to the term “shareholder value”. We are all “shareholders” in the whole, and the only way to get “value” out of that is to achieve balance in the whole…