There was a time, along time ago, when corporations were managed with the understanding that their success was dependent on satisfying the 3 constituents responsible for their success: Customers, shareholders, and employees.  In 1991 I attended a board meeting for a three letter fortune 5 company (I was a member of the executive staff support staff) where a well respected consulting company recommended that the successful management was the satisfaction of the share holders above either customers or employees. This was pure Milton Freedman libertarian drivel. Ironically they also promoted a new executive compensation strategy to “unlock growth” based on stock options. All I could think after the Board accepted this strategy was that this will not end well… thousands lost their jobs, the quality of the products declined, customer’s left, and the company was eventually sold at a discount based on asset value. I am now seeing lip service paid to diversity, customers, and employees but until the single minded obsession on short term stock prices goes away employees will be abused, customers will be taken advantage of and senior managers will be enriched for the destruction of their companies.

There was a time, along time ago, when corporations were managed with the understanding that their success was dependent on satisfying the 3 constituents responsible for their success: Customers, shareholders, and employees.  In 1991 I attended a board meeting for a three letter fortune 5 company (I was a member of the executive staff support staff) where a well respected consulting company recommended that the successful management was the satisfaction of the share holders above either customers or employees. This was pure Milton Freedman libertarian drivel. Ironically they also promoted a new executive compensation strategy to “unlock growth” based on stock options. All I could think after the Board accepted this strategy was that this will not end well… thousands lost their jobs, the quality of the products declined, customer’s left, and the company was eventually sold at a discount based on asset value. I am now seeing lip service paid to diversity, customers, and employees but until the single minded obsession on short term stock prices goes away employees will be abused, customers will be taken advantage of and senior managers will be enriched for the destruction of their companies.

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