Robert Goizueta-Why Shareowner Value?

Introduction (via Roberto Goizueta)

At The Coca-Cola Company, our publicly stated mission is to create value over time for the owners of our business. Of course, there are plenty of other missions upon which a company could focus: serving customers; pursuing philanthropy; providing the highest quality of products and services; creating jobs and job security.

But I would submit that in our political and economic system, the mission of any business is to create value for its owners. In the wake of huge layoffs at certain companies, this idea has been vilified by many critics, and doubt has arisen in the minds of many business leaders about their purpose. This is incredibly dangerous to the companies whose leaders doubt their purpose and to the society that those companies serve. So why is creating shareowner value the right mission for our businesses? There are three basic answers to this question:Increasing shareowner value over time is the job society demands of us.Increasing shareowner value enables us to contribute to society in meaningful ways. Focusing on creating value over the long term keeps us from acting short-sighted.

Good Quotes (via Roberto Goizueta)

“The greatest contributions we make to society come not because we do good deeds, but because we do good work.”

“We must remain focused on our core duty: creating value over time.”

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About Miguel Barbosa

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06. March 2010 by Miguel Barbosa
Categories: Curated Readings, Finance & Investing | Leave a comment

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