What's the point of your company?

05/30/2012 | Harvard Business Review online

Too many people believe that a company's sole purpose is to maximize shareholder value -- a "bizarre notion" given that virtually nothing else in life can be usefully boiled down to one metric, writes Lynn Stout. It's more useful to strike a balance that also considers factors such as social impact, long-term sustainability and employee welfare. "Corporations serve their shareholders better when managers and directors recognize that corporations can pursue many different corporate goals and objectives, too," Stout argues.

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