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Fair enough, but the notion of "shareholder primacy" has been around since the early 1900s. My understanding of the shift that occurred in the latter part of t
by lliamander 9y ago
Fair enough, but the notion of "shareholder primacy" has been around since the early 1900s.
My understanding of the shift that occurred in the latter part of the 20th century was that businesses became less dependent upon fixed local communities.
Part of it was that the communities themselves were dispersing (increased geographic mobility among the populace).
But other factors include:
- a shift from capital-intensive industries like resource extraction and manufacturing, to service industries
- the opening of foreign labor markets
- maxxxxx 9y ago" Fair enough, but the notion of "shareholder primacy" has been around since the early 1900s." I started hearing about it with Jack Welch ("neutron jack"), GE and others. There was a noticeable change in attitude. "Greed is good". Layoffs were good for the share price.
- lliamander 9y agoInteresting. I'll have to look into those references.
- maxxxxx 9y agoRead this: https://www.forbes.com/sites/stevedenning/2017/04/27/harvard-business-review-the-pernicious-nonsense-of-maximizing-shareholder-value/#3d0320d471f0 https://www.forbes.com/sites/stevedenning/2017/04/27/harvard... It started in the 70s. As far as I know GE and Jack Welch were the poster child of this movement.