Abandon the “shareholders first” principle, a paper statement from the leaders of American entrepreneurs, but also shocked the entire world. . 819, American entrepreneur Business Roundtable BRT– primarily a lobbying group composed of chief executive officer, issued a new statement, the purpose of the enterprise and historic re-defined as: “provide value for customers; investment staff; for the creating long-term shareholder value. “this statement, changed over the years,” shareholders first “principle, quickly caused an uproar in the industry. Redefined business objectives of the organization founded in 1978, has been a decisive behalf of the Organization of American business. The meeting, there are 181 CEO or responsible person involved in the meeting. Many participants are the man of the hour, both Apple, Pepsi, Wal-Mart, General Motors, Johnson & Johnson, Amazon and other leaders of the real economy giants, there are people in charge of JP Morgan Chase and other Wall Street financial firms. They are expected by this declaration, to redefine “a business role in society.” While this argument may sound very surprising, but in fact it is more like a return to tradition. Throughout most of the time since the early 1980s and 1990s, the Round Table has been that companies have a responsibility to “carefully weigh the interests of all stakeholders.” To 1997, the Round Table “shareholders first” principle into a formal written statement. This to “shareholders first” attitude, was widely considered to be an important indicator of the evolution of corporate America. It allows investors to profit heavily excited, and it has overturned the kind of enlightened form of capitalism after World War II appears. In the past 20 years, every principle of its release are clearly demonstrated this, the company is shareholder service – which has been like a oath ceremony.
shareholder is no longer supreme
Until this time, all stakeholders, from customers, employees, suppliers, communities to the shareholders, have become businesses need to focus on objects. The position of the shareholders, from the “first” slide “one.” It seems time to bid farewell to the last century since the eighties Chicago liberalism, and to reverse the profit-oriented enterprise system, the interests of all sectors of society will shift the balance of employees, customers, communities and so on. Wall Street financial capital Jiezeeryu style globalism, seems to have awakened a new bell. However Aspen Institute believes that this statement, but a return to a “common sense Principles”Employees need to share more of the interests of the cake, to ensure a healthy economy and society. Alibaba in 2014 to make a similar concept, customers first, employees second, shareholders third. Of course, control Engineering network Copyright , even with such a statement, CEO is not easy to do. for example, the company CEO must curb the urge to increase share repurchases. these repo often has become a financial stimulant, a record the shares were repurchased recurring events , and the main purpose of this operation is to raise the stock price. Germany and Japan, Germany quickly respond to rapid response. a lot of media coverage of the United States corporate governance model showing a modification of the message – which is seen as a German “US managers seeking a more sustainable model of development,” such as theme “corporate America is to think less of profit”, it is inevitable to make the German business community may have some. proud, because many German companies (many of whom are high-profile companies) have chosen to take the initiative away from the stock market, this is an important feature of the business model in Germany Frenchman Duval in France and Germany reflect on their mode of difference “German model: Why look more successful,” a book, which has conducted in-depth analysis, there is a section of more bluntly wrote, “(Germany) enterprise not only only the shareholders, “where” labor codetermination system “to bring the power of executives severely restricted (in contrast, the French managed to authoritarian much) other points also impressive: based on the interests of employers industry consultation on the basis of (in contrast, the French are much weaker); banks and industrial mutual penetration, but also makes the financial pressure on businesses is not particularly large, lending banks will provide enterprises tend to become a corporate asset part, so as to avoid the formation of pressure because shareholders greed in decision-making. Although in the past two decades, with the internationalization of German companies increased, more and more diverse sources of funding, banks industrialization is gradually declining, but the family assets German large enterprises still play a role Dinghaishenzhen these years of practice, so that “no shareholder first” for German companies Words, it is tediously familiar scene. German companies stick, appears to be correct. Japan is also react, but also very positive. After all, this statement with years of Wall Street uphold the concept of place. The future really but the overall rise in the economic sense of community, remains to be seen. but the dayThis is a sense of crisis has been a strong country. In fact, most Japanese companies attach importance to the interests of all employees, communities, shareholders and other stakeholders of the business philosophy. However, in the past two decades, the economy has been sluggish, traditional Japanese business philosophy is much the object of accusations. US companies hundreds of companies to maintain more than 30 years of continuous growth, while Japanese companies, only a barely Kao nearly three decades. Starting abenomics Control Engineering Copyright , Japan to learn about American attention to the interests of shareholders of thought, has increasingly become a popular concept. Sony is one of the most typical example, it is expected to profit in fiscal year 2018 to reach a new peak of 58.6 billion yuan, a record high for two consecutive years to refresh. The former electronics giant this year has been repositioned as a “creative entertainment company,” while the hardware business is merged. There are even activist shareholders, it is recommended to give up Sony’s semiconductor business. Behind this there is the sound from the Wall Street shareholders. However, for Japanese companies, “shareholder primacy” This trip just ready to set sail, the result of American master intend changed. This will make the Japanese business ideas, it is bound to re-generate a new collision, confusion is inevitable. How to leave the United States manufacturing scholars have been trying to figure out how globalization is emptied little by little “Made in America”, led to a series of rusty industrial ecosystem. The most important thing is that with a large number of barren plants, accompanied by the American discovery and manufacturing with the “black hands innovation” (which refers to the workshop of innovation), is also gone. It also led directly to the embarrassing situation upstream innovation can not be landing in the country. The United States lost more than just jobs, as well as create innovative soil. “American invention, offshore fabrication” (Invented Here, Manufacturing There) became the biggest innovation of a heart disease. All this is where to start? The first shareholder doctrine, by the Nobel Prize-winning economist Milton Friedman advocated by Mr., had already become the basis of all business activities. As early as 1970, the University of Chicago professor in the “New York Times” the author writes, “Corporate social responsibility is to increase profits.” This was interpreted as naturally, the role of the company at all costs , to maximize shareholder profits. Friedman then became a belief, Wall StreetElite regarded as a model. This belief is treated as a braid entrepreneurs, Wall Street shook never ever let go. With the idea of this organization values corresponding to, quickly began to find prosperity soil. From the beginning of the last century the seventies and eighties, the “core competencies” is regarded as a model of management, and even become a popular culture. Massachusetts Institute of Technology about ten years ago, why would the US manufacturing outsourcing (or loss) made a global research, and make a point: it is because the requirements of Wall Street profits, leading US multinational companies are using asset-light, have stripped the manufacturing sector, the large number of manufacturing outsourcing. An example of the most persuasive, when part of Timken Bearing Group. The second global bearing manufacturer, in 2013 shareholders’ meeting, the activist shareholder massive criticism that its steel industry to remain part of the group, dragging down the entire company’s share price. So Iron and Steel Group was required to divest out. This interference from the profit of shareholders, almost completely ignoring the decisive role for high-quality bearing steel materials played. The same can also be seen as early as 1999, even the prestigious blue-chip HP business growth in the first year of unfavorable time, also asked shareholders to give measurement department. HP can only be measured with bioanalytical departments for independence, which is later Dingdingyouming Agilent analytical company. “Asset light” model is widely chase, as the manufacturing sector is a heavy burden, first left out of the manufacturing business unit. It soon became an investment-set, quarterly earnings reports become the focus of investor attention, aggressive investors began to host. They purchase large number of shares, the board, the manufacturing sector of operation, plus a large interference. They urged corporate “downsizing” focus on core interests. The intrinsic value of the stock and the company gradually be regarded as equivalent things. The company’s goal is no longer produced or how much product to meet the needs of the number, but “they create much value for our shareholders.” By the late 1980s, financial markets increasingly favor a more streamlined organizational structure, earnings prominent companies, rather than those conglomerates can provide long-term long-term benefits (including pensions) to employees. Economic Commission for productivity Massachusetts Institute of Technology After more than two years of global multinational research, bitterly that “core competencies”, “asset-light model” This led to the foundation of the US manufacturing innovation is undermined and eroded. The principle of the supremacy of shareholders, ignore thiscut. Adhering to diversify and try to keep the body’s manufacture of General Electric GE, were aggressive fund Trian been emperor to abdicate. GE recent tough times this year, there is of course the electricity market downturn and energy and financial assets of some inappropriate relationship, but Immelt is early retirement and subsequent Huanglihuangzhang clueless CEO of the cards, and aggressive the shareholder representatives, is also a great relationship. The same emperor to abdicate, but also in P & G’s body. This is a handful of vertically integrated operations adhere to the American companies, but also have become Wall Street shareholders’ persecution of the object. ” Now, there are signs that a turning point has emerged. This shift occurred in the era of US companies are facing many challenges of social responsibility, the United States occurred at a time of globalization itself being torn. Manufacturing Outsourcing cause serious erosion of blue-collar workers and communities, so that this phenomenon severely tortured repeatedly by politicians, WTO organization has also been more challenges. These are the time to “America” (Corporate America) can not help responding. Small Business Roundtable note did not provide specific details about how to implement its new idealized declaration. It was just a mission statement. However, the action plan following the declaration might follow up bit by bit. After all, this is a shake fifty years of faith, like a fine old trees sway fifties. Wall Street financial giants promised to whether the “new rebel” entrepreneurs, and now can not judge. If the “shareholders first” principle, can really be shaken, it may become a new milestone in the pattern of global manufacturing. The latest refresh of investment by former US President Barack Obama “American factory” documentary showed that manufacturing, back, after a certain form of the deformation, it is entirely possible. Keen to talk about a different movie inside this factory in the United States and the Chinese people, but then entrepreneurs Business Roundtable subtext somewhat overlooked: American companies are engaged in a quiet transformation, a possible cause profound changes in the pattern of global manufacturing concept change. This will accelerate the return to the US manufacturing sector, perhaps the era of vertical manufacturing enterprise integration CONTROL ENGINEERING China Copyright , but also back.