Bloomberg Businessweek The 21st Century Corporation
15 snips
Jan 7, 2025 Sir John Kay, a Fellow at St John's College, Oxford, and author of "The Corporation in the 21st Century," delves into the evolution of corporate power and ethics. He critiques the tension between profit and purpose, using Boeing's journey as a key example. The discussion highlights the shift from valuing infrastructure to prioritizing human capital and the implications for future business practices. Kay also reflects on the importance of redefining corporate responsibilities, focusing on personal well-being to foster healthier organizational cultures.
AI Snips
Chapters
Books
Transcript
Episode notes
Boeing's Shift in Focus
- Boeing was once the world's dominant aviation producer, prioritizing aeronautics.
- Shifting focus to shareholder value led to disasters like the 737 MAX and reputational damage.
Shareholder Value vs. Business Building
- Companies are rewarded for short-term metrics and stock prices, not long-term value creation.
- True shareholder value comes from building a great business, not the other way around.
The Changing Nature of Business
- Modern businesses are built on skilled people, not just physical plants, unlike older industries.
- The rise of the "shareholder value" creed clashes with this people-centric model.
