Conversation #2 - Shareholder Value: friend or foe?

Social entrepreneur Hugh Davidson recently claimed that the shareholder value concept will die after the next financial crisis (which he predicts will come in 2020), foreseeing that by 2059 marketers will view shareholder focus as the “dumbest idea in the world”. Instead, the focus should be on stakeholders – meaning employees, customers and the society within which the business operates.

This adds yet more fuel to a long-running debate that is hotting up: shareholder versus stakeholder focus. Which should take priority?

At Brand Learning we believe that driving shareholder value and enhancing stakeholder value are not mutually exclusive. We believe that Marketers have both the responsibility and opportunity to drive growth by leading 'customer-centricity'. Marketing leaders operating as ‘Chief Growth Officers’ can unite both priorities.

By having a deep understanding of the inter-relationship between these forces, championing stakeholder value whilst being able to talk the language of shareholders, and demonstrating how the two co-exist to drive growth, Marketing will deserve its seat at the top table.

Let us know what you think. Submit your response here and we’ll post asap.