> Regarding shareholder value, Welch said in a Financial Times interview on the 2008 financial crisis, "On the face of it, shareholder value is the dumbest idea in the world. Shareholder value is a result, not a strategy...your main constituencies are your employees, your customers and your products."[69]
Rather odd to see this quote coming from Welch, the man who almost single-handedly destroyed the notion that corporations had a duty to employees, and society at large first, and shareholder value coming as a result of those.
His actions, and management style completely defined the era of corporate behaviour we live since the 1980s: the layoffs, the carelessness on axing whole departments of companies which underperformed for a couple of quarters, only looking through short-term financials, all the focus on quarterly reports and financialisation of the economy come from his "teachings".
It was very hard for me to believe he uttered these words, rot in hell, Jack.
Rather odd to see this quote coming from Welch, the man who almost single-handedly destroyed the notion that corporations had a duty to employees, and society at large first, and shareholder value coming as a result of those.
His actions, and management style completely defined the era of corporate behaviour we live since the 1980s: the layoffs, the carelessness on axing whole departments of companies which underperformed for a couple of quarters, only looking through short-term financials, all the focus on quarterly reports and financialisation of the economy come from his "teachings".
It was very hard for me to believe he uttered these words, rot in hell, Jack.