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Reconciling Profitability and Responsibility
Emmanuel Fosu, Member
Here’s a list of ways in which CEOs can deal with the trap of focusing solely on satisfying the shareholders or the stakeholders:
- Making all stakeholders of the business realize that win-win situations are key to the success of every business organization.
- Convincing all stakeholders that long term satisfaction of the shareholders (by maximizing profit and receiving higher and sustainable dividends) thrives on being responsible in the eyes of other stakeholders, including customers.
- Explaining the products a business sells strengthen its capital base, and that such sales depends on how confident stakeholders feel about the organization
- Convincing all stakeholders that being responsible means being profitable by satisfying/delighting the stakeholders.
Please add additional approaches to the list if you know of any, thanks….
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