Leader: Time for shareholder interests to take a back seat

George macdonald

Running companies primarily in the interests of shareholders is a business sacred cow that it is perhaps time to put out to grass.

It’s not that they are villains. On the contrary, investors have played a central role in ensuring the success of retailers, by buying into IPOs or propping embattled companies up through supporting rights issues and similar as the industry restructures.

But they increasingly form part of a wider stakeholder base, alongside staff and suppliers, whose interests are ignored at a company’s peril.

 

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