Exploring the Origins of Shareholder Supremacy in Modern Capitalism

The concept of shareholder value has shifted the focus of many companies from customer satisfaction to maximizing profits for shareholders. This shift, known as shareholder supremacy, has a deep-rooted history dating back to the early 20th century. The Ford Motor Company's case illustrated the conflict between prioritizing employee welfare and infrastructure investment over shareholder dividends, leading to a legal precedent emphasizing profits for shareholders. The historical narrative of prioritizing short-term gains over sustainable business practices has shaped the modern capitalist mindset, rewarding immediate gains at the expense of long-term growth and innovation.