The drive for sustainability has to some extent undermined the concept of shareholder value. Denis Kilroy argues that the key strategy companies should be pursuing is creating ongoing value and wealth.
The real economic challenge facing the board and executive team of a listed company is not to maximise value for existing shareholders, or even to create shareholder wealth per se. Instead, it is to build an enduring institution capable of creating value for customers and wealth for shareholders on an ongoing basis.
The word “ongoing” here is key, because the way a company goes about creating customer value and building shareholder wealth is often the primary determinant of its ability to continue to do so. And it is entirely possible to pursue these joint and mutually reinforcing goals in ways that deliberately set out to enhance the
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