A myth exists in the corporate world, that maximizing shareholder returns requires laser focus on maximizing shareholder returns. Thinking beyond the shareholders’ bottom line, the myth continues, not only risks financial performance, but shareholder derivative suits as well.
However, emerging data shows that a stakeholder approach to corporate decision-making – where corporations consider the impact of their decisions on consumers, employees, the environment, the community, and greater society, in addition to the shareholders – generates significantly better financial returns.