Who owns listed firms?
Sunday, May 02, 2021
This solitary prescriptive path to corporate glory came into vogue and created a hum of excitement in the early 1970s. The pioneering proponent of this view, Milton Friedman; an influential economist, argued, “there is one and only one social responsibility of business; to…engage in activities designed to increase its profits.” This ‘mantra’ is now a subject of debate, on the one hand between economists and lawyers, and on the other, between executive management and shareholders.
Inquisitive brains are back in vogue, questioning the rationale for Friedman’s doctrine. The horizons of corporate leadership have opened beyond shareholder-value-thinking (SVT). The bar would be too low if SVT served as the sole measure of performance. The centre of gravity has rightfully shifted towards the creation and sustenance of the intention-fueled humanitarian principle of shared value. In progressive companies, the delicate balancing of the interests of employees, creditors and customers with wealth creation has assumed prominence. Liberal leaders with minds untrammeled by convention have embraced altruistic virtues and challenged the orthodox body politic.
The heartbreaking reports carried elsewhere on this publication of a woman killed in Metsimotlhabe and four family members perishing near Metsimaswaana Bridge are, devastatingly, not isolated incidents. They represent the sharp, painful tip of a weekend that has seen far too many collisions, injuries, and losses on the roads. This alarming spike in fatalities is a screaming siren we cannot ignore. It compels a direct and urgent plea to every...