Shareholder value or social responsiblity? What should motivate today's CEO?

Abstract

Purpose

Reviews the latest management developments across the globe and pinpoints practical implications from cutting‐edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

Here's a question for business executives. In the twenty‐first century, what is the business of business? Is it still the case that, to borrow Milton Friedman's phrase, “the business of business is business”, meaning that all that really matters is shareholder value? Or, in a world where big companies can yield substantial financial, social and even political power, should it rather be business's business to take responsibility for social issues in their local and national communities?

Practical implications

Provides strategic insights and practical thinking that have influenced some of the world's leading organizations.

Originality/ value

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy‐to‐digest format.

Citation

(2007), "Shareholder value or social responsiblity? What should motivate today's CEO?", Strategic Direction, Vol. 23 No. 8, pp. 15-18. https://doi.org/10.1108/02580540710759106