Criticism on Value Based Management

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Some criticize the principles of value-based management, arguing it fails to take into account other constituencies than stakeholders (locals, customers, employees, environment etc). But in order to create value for shareholders, there should also be a good reputation in 3 areas: 1. The quality of goods and services. 2. Capability to find talented people, hire them and keep them as employees. 3. The community/environment. Indeed, evidence exist that value for shareholders could exist only if there is value for other constituencies as well. For example, once customers are not pleased, they will buy from competitors. Or, if employees are unsatisfied, they will leave and change their job. Source: S. D. Young and S. F. O'Byrne, EVA and Value-Based Management: A Practical Guide to Implementation. (...) Read more? Sign up for free

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		Value Creation with Focus and Respect for the 3 P's! Ottervanger, Partner, Netherlands, Member
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		At the End It's the Money that Decides! Pouw, Teacher, Netherlands, Member
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		Temptations of VBM to Only Consider Short Term and Interests of Shareholders Ranjan, Director, India, Member
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		Value Based Management Rajesh Sharma, Professor, Nepal, Member
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