Maximizing shareholder value: the risks to employees, customers and the community Available to Purchase

In this article the author traces the history of corporate governance in Britain over the past decade. He concludes that the movement has been “hijacked” by the city and large accountancy partnerships. This has led to an undue emphasis on achieving financial goals and compliance with codes of practice i.e. “box‐ticking”. In the drive to maximize shareholder value, the critical relationships with employees, customers, suppliers and the community have been sacrificed and long‐term shareholder value has been destroyed. In order to rebuild the trust of the individual shareholders, employees, pensioners and the public at large, city institutions must focus less on maximizing shareholder value in the short‐term and more on optimizing shareholder value through building strong relationships with all the stakeholders.