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The Value of Value Drivers

In: Business Logic for Sustainability

Author

Listed:
  • Aileen Ionescu-Somers
  • Ulrich Steger

Abstract

At a panel discussion organized in 2002 by Arthur D. Little, food industry executives were crystal clear about the food industry mandate to primarily improve performance to benefit shareholders and the challenge that integrating social and environmental issues into business strategy brings in this context: Food companies cannot afford to lose sight of the fact that their primary duty is to shareholders. Whatever the demands of consumers and other stakeholders, companies must ensure that corporate responsibility policies do not undermine shareholder value. Markets focus on short-term profit, while sustainability policies tend to involve a longer-term return on investment. While private companies may have more freedom to focus on the future, shareholder owned businesses must be aware of the impact of their policies on profits. (Arthur D. Little, 2002)

Suggested Citation

  • Aileen Ionescu-Somers & Ulrich Steger, 2008. "The Value of Value Drivers," Palgrave Macmillan Books, in: Business Logic for Sustainability, chapter 5, pages 112-146, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-58350-4_5
    DOI: 10.1057/9780230583504_5
    as

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