At Outthinker, we have been tracking a sea change in the idea of a corporation’s shift for two decades. We have witnessed a slow but determined march away from the view that corporations exist to serve shareholders toward one in which corporations recognize they serve many masters: employees, communities, the environment, the world. In our 2012 book, Outthink the Competition, we dedicated an entire chapter to “Be Good,” writing that “there is a shift under way from making money to doing good.”
Earlier this month, we introduced our 2021 Business Trends report based on in-depth conversations with top CSOs in our Outthinker Strategy Network. We will be expanding on one of these trends every week with the intention of supporting your organization’s strategy for the next year and beyond. This is our second installment.
The Ultimate Strategy
Is “be good” a part of your 2021 strategy? If not, you should reconsider.
When I was in business school, we learned that companies exist to do one thing: maximize shareholder value. At Outthinker, we’ve been talking for years about how this belief has become defunct. Companies are realizing that focusing solely on shareholder value creates resistance to growth that ultimately diminishes value to those shareholders.