August 21, 2019 - Issue 19-34


Good Afternoon  ,

Whose interest should a company put first in deciding policy and building a culture? Until recently it was commonly held (Milton Friedman was a big proponent) that stockholders' interests should supersede all others.

It was all about the bottom line. Results were all that mattered.

Recently the Business Roundtable, an association of America's top CEO's, issued the  "Statement on the Purpose of a Corporation". It differs significantly from the statement they issued as recently as 1997. Justin Bariso reports here that these guys say the focus has shifted from stockholders to stakeholders. BIG difference, IF they follow through!

Everyone knows who the stockholders are - the owners of the company. And they're among the stakeholders. So are employees, customers, and vendors. It includes all those whose lives and fortunes the company affects by its actions and results.

So the new statement suggests:
  • Take care of your employees.
  • Your employees will take care of your customers.
  • If your customers are happy, your shareholders will like the results.
  • Vendors benefit from doing good business with good companies, and this results in win-win relationships.
Once again the video (under 7 minutes) illustrates all this better than the text of the article, in my estimation. Kip Tindell, founder and CEO of The Container Store, explains how this idea works in his company.

So...it's still about the bottom line! You improve results by looking after the interests of those who produce them.

In past issues (here and here are examples) I've focused on this concept before.
John Stevens


Note: Archived issues of The Unity Community are available here.
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About John

Throughout a career spanning over 45 years my management style has been one of building teams to bring several competent people together to focus on a common objective. I noted early in my career that, in most organizations, there is an enormous amount of time, energy, and effort wasted by people working at cross purposes.

As I transition to life in the Argentine outback, my focus shifts from coaching to helping other business coaches and advisers get their message out to their prospective clients. With my first-hand knowledge of the benefits of effective business coaching, I am uniquely qualified to help business advisers of all stripes convey their message.

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John B. Stevens, Freelance Copywriter
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814-590-3854

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