A delicate balance of stakeholder interests is at the heart of any thriving company. Shareholders, customers, banks, employees, suppliers, and governments—all have their priorities. However, to achieve meaningful impact and long-term growth that fosters overall health, each of these stakeholders must be willing to sacrifice a portion of their short-term interests. This is our paradox: sustainable success and meaningful impact demand short-term lenience for the greater good, to leave a better world behind than when we found it.
Shareholder: Sacrificing Dividend for Meaningful Growth
Shareholders often seek to maximize profits, extracting as much value as possible from the company. Yet, to achieve long-term goals, they must extract less. Reinvesting profits into long-term strategies—such as innovation, sustainable practices, and human development—requires a conscious shift away from immediate returns. This shift isn’t about forsaking profit but recognizing that growth and meaningful impact take time, and lasting value comes from patience.
Customers: Investing in a Healthier Future
For customers, the priority is often obtaining quality products at the lowest possible price. But to empower companies to invest in meaningful impact and long-term growth, customers, too, must contribute—perhaps by paying just a bit more. Imagine the impact of a 5% premium, channeled into sustainable practices or research that benefits society as a whole. That slight shift could foster innovation that drives broader value, promoting both societal and environmental health.
Employees: Investing in Career Longevity Over Immediate Pay
Employees are often focused on maximizing their career and short-term compensation. While understandable, slightly lower wages today allow companies to direct more resources toward long-term strategies that promote organizational stability, growth, and ultimately, better career opportunities in the future. This balancing act ensures employees’ long-term success is aligned with the company’s vision.
Banks and Lenders: Redefining Interest for the Greater Good
Banks, driven by the need to satisfy their own shareholders, aim to maximize returns on loans. But if financial institutions were to reduce interest rates slightly, they would create more room for companies to invest in long-term strategies. This isn’t about disregarding profit—it’s about adjusting expectations in the short term to create lasting, stable returns over time, contributing to the overall health of the economy and society.
Governments: Enabling Responsible Growth
Governments, in their pursuit of maximizing tax revenue, could slightly reduce tax burdens on companies to enable long-term growth. Lowering taxes by a small margin allows businesses to reinvest in areas like research, innovation, and sustainable practices that benefit the broader economy in the long run. Such lenience fosters a healthier business ecosystem and future tax revenue growth.
Shared Value Networks (SVNs): Moving Beyond Supply Chains
SVNs go far beyond traditional supply chains, which involve only one key stakeholder—suppliers. They also supersede lobbying networks, tax evasion groups, and other interest groups, as SVNs aim to foster collaboration that transcends individual agendas. SVNs even surpass the company’s interests, focusing on the greater good.
By promoting cooperation across all stakeholder groups, Shared Value Networks encourage long-term, meaningful impact that benefits society as a whole.
Building on Trust and Transparency
For long-term growth to be truly effective, the process must be built on trust—strong relationships across all stakeholders—and transparency, guided by robust governance. The current governance framework, primarily representing shareholders, is insufficient. We need a transparent and unbiased reporting body that equally represents all stakeholders’ interests. Only then can we ensure that decisions are made for the greater good, not just for short-term gains or the benefit of one group.
The Collective Sacrifice for Long-Term, Meaningful Impact
Every stakeholder—shareholders, customers, employees, banks, suppliers, or governments—needs to give a little. This collective lenience grants companies the freedom to pursue long-term strategies that create more than just financial wealth. It enables them to invest in healthier economies, societies, and environments. It allows experimentation, collaboration, and growth in ways that lead to shared value and meaningful impact for all.
The Path Forward: Prioritizing Overall Health and Longevity
True long-term growth is about more than financial success. It’s about creating a healthy business ecosystem that supports economic stability, environmental resilience, and human well-being. To make this possible, stakeholders must understand the company’s long-term vision and support its journey. The goal is equitable profit distribution and responsible growth, creating a future where financial growth is aligned with societal and environmental health.
The paradox is simple: long-term growth and meaningful impact require us to sacrifice short-term interests. If all stakeholders agree to give just a little, we can collectively leap into long-term growth—where everyone benefits. The time to shift from short-term extraction to long-term impact is now. Let’s embrace this paradox and create room for sustainable, meaningful growth and overall health—for the greater good.
Continue Reading:
More Than Crumbs: The Case for True Value Creation
For decades, shareholder primacy has dictated corporate decision-making, driving businesses to prioritize short-term profits and disproportionate returns to shareholders over long-term sustainability and stakeholder value.
Beyond Extraction: Why Regenerative Business is the Only Way Forward
The RoundMap’s Regenerative Business Framework proposes a dual-cycle approach to business: one focused on value creation and another on impact. However, reality presents us with
RoundMap Regenerative Business Framework: Empowering the Present while Building the Future
Executive Summary The Regenerative Business Framework addresses the critical need for businesses to move beyond mere profitability toward regenerative practices that drive long-term growth and
The RoundMap Flywheel: A Shift Toward Sustainable Ecosystem Resilience
What if impact creation was as strategic and intentional as value creation? What if every dollar earned didn’t just fuel a business’s bottom line but
From Striving to Thriving: How Amazon is a Strive-Driven Giant Failing to Thrive
Amazon has become synonymous with business success, often hailed as a master of efficiency, customer obsession, and innovation. At the heart of its growth strategy
Impact Strategies to Amplify Value and Mitigate Harm Across Stakeholders
What if doing the right thing wasn’t just a moral choice but a strategic one? What if amplifying your organization’s positive impact while mitigating harm
From Extraction to Contribution: Thriving Together with Shared Success
The Flywheel of Shared Success is designed to demonstrate that staying within the boundaries of responsible growth doesn’t mean limiting our ambitions—it means channeling them
The Twin Engines of Progress: Returns on Value and Impact
At the heart of the Flywheel of Shared Success lies the powerful interplay between Value Returns and Impact Returns, both of which operate on the
From Hopping for Cash to Building Bridges: Why Self-Interest Alone Can’t Sustain Shared Prosperity
What we’re proposing with the Flywheel of Shared Success is nothing short of a call to confront and correct our deeply flawed execution of Adam
The Strive & Thrive Cycle: Distinquishing Between Value and Impact
Distinguishing between value creation and deployment (Strive-phase) and impact creation and deployment (Thrive-phase) is critical to clarifying their roles within the Strive & Thrive Cycle. Here’s
From Striving to Thriving: How Decathlon is Shaping a Sustainable Future in Sports Retail
In the ever-evolving world of sports retail, the line between short-term success and long-term impact is a delicate balancing act. For companies like Decathlon, the
From Profit to Purpose: How Shared Value Networks Unlock Long-Term Impact
Businesses today face a stark dilemma: how to balance short-term growth while pursuing long-term impact? It’s an especially relevant question in a competitive landscape where
