Issue link: https://www.e-digitaleditions.com/i/55680
Connected Capitalists The by Tricia Bisoux "The purpose of the corporation is to maximize shareholder value." "The purpose of the corporation is to serve society." A 24 sk members of the business community which statement they believe to be most true, and they're likely to fall solidly in one of the two camps. The profit maximizers think the society servers are unrealistic; the society serv- ers think the profit maximizers are unsympathetic. Both sides argue fervently about busi- ness's raison d'être; neither is likely to change its mind. But what if their points of view aren't mutually exclu- sive? What if today's increas- ingly volatile and intercon- nected business environment requires that these views become one and the same? That's the basis of an emerging concept called "connected capi- Increased government regulation, turbulent economic climates, and a greater emphasis on sustainability are compelling many business leaders to view capitalism in a different light. talism," a departure from traditional views of business. Fervently promoted by E. Neville Isdell, former CEO of The Coca-Cola Company, connected capitalism does not view "doing good" and "maximizing profits" separately. Instead, it holds that businesses must do good in order to maximize shareholder value, operate suc- cessfully in global markets, and secure long-term business interests. BizEd MAY/JUNE 2010