The Long View: Why “Maximizing Shareholder Value” Is On Its Way Out

Thanks to my friend Allen (http://allenandson.blogspot.com/) for sharing this great article from TIME Business & Money.

"First, there are graduate students, many of whom are passionate about changing the world—and not just getting rich. The trouble is that all too many business and law schools undermine this spirit by teaching traditional classes that reinforce a short-term mindset. As Cornell law professor Lynn Stout, one of those at the Claremont gathering, has made abundantly clear, by the time these students hit the job market, they’ve come to falsely believe that the primary purpose of the corporation is to “maximize shareholder value.”

 

Rick Wartzman is the executive director of the Drucker Institute, a social enterprise at Claremont Graduate University, whose mission is strengthening organizations to strengthen society. He is the author or editor of five books and for 20 years was a reporter, editor and columnist at The Wall Street Journal and Los Angeles Times.

Read more: http://business.time.com/2013/09/25/the-long-view-why-maximizing-shareholder-value-is-on-its-way-out/#ixzz2g35c2D00