Is Shareholder Value Thinking a Mistake?

The idea of shareholder value is a fairly recent concept, but also potentially a fictional one. Shareholder value thinking causes corporate managers to focus myopically on short term earnings reports at the expense of long-term performance. It harms employees, customers, communities and causes companies to indulge in reckless, socially irresponsible behavior. And so i think it's important to run companies for the benefit of shareholders rather than just their own interests.