Action: "Define an organizational purpose that goes beyond next quarter financial results and goes beyond maximization of shareholder wealth. Define a purpose that employees can believe in and challenges them to contribute their best work." Peter F. Drucker
It may surprise some of you that the Boston College School of Good Corporate Citizenship has been in operation since before 1985 http://www.bcccc.net/index.cfm . And BC is only the proverbial tip of the iceberg. Consulting firms have called it "Sustainability" for many years. Corporate Financial Officers have had Philanthropy as part of their reporting portfolio for decades now. And yet Dr. Drucker is right, shareholder wealth still depends upon short term, quarterly reports.
I, again make my oft repeated "call into the wilderness" to CEO's of Public Companies: "Stop quarterly profit and guidance reporting now". Yup, just DON'T do it... become the anti-nike. Do only what IFRS-1 requires. It may force a few useless financial analysts to get real jobs, but it will certainly trim the negative results of quarterly reporting at the roots.
Especially at this time of economic disruption and uncertainty our corporate leaders need to start reporting and focussing on other issues which will inform the American Social agenda with respect to our global competitiveness.
Why do our capital markets need to be efficient and healthy? How should the trained American knowledge worker relate to a national/regional/social higher purpose? Why is it important to the California farmer that the unemployed auto worker in Detroit receives re-education as quickly as possible? Do we need a new American Social Pact between corporations and workers, or do we just need to revive traditional values?
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