Customer Value, Shareholder Wealth and Stakeholder Wellbeing

Abstract

Chapter 8 demonstrated how with the right mindset, a disciplined approach to innovation can underpin the ongoing creation of both customer value and shareholder wealth for a listed company. However just below the surface of this thinking is another important consideration. Once customer value creation and shareholder wealth creation are embraced as joint and mutually reinforcing objectives, business leaders can (if they want) make a conscious choice to pursue these two joint goals in ways that either preserve or enhance the wellbeing of all legitimate stakeholders. These include employees, suppliers, the wider community and the environment. Choosing to act in this way is somewhat analogous to an institutional investor choosing to invest in socially responsible companies. This chapter provides guidance for those leaders of listed companies who wish to move in this direction.