More people need to know about this book by Bartley J. Madden! This book provides a framework for sustainable capitalism that is essential reading for more than just finance/accounting professionals. The principles in the book can be applied from non-profits up to the largest multi-national corporations. When the knowledge base of employees/stakeholders improves the organization will benefit. Take a deep dive now and learn about the Pragmatic Theory of the Firm.
A firm must achieve a four-part purpose to maximize shareholder value:
1. A firm must provide a strong vision so employees will be motivated and work in an ethical manner to help fulfill this greater purpose.
2. A firm must have a culture that adapts quickly and builds its knowledge base so that it can at bare minimum earn the cost of capital.
3. Win-win relationships must be sustained for all stakeholders of a firm. Companies will not be successful long-term if they only focus on relationships/success with one group of stakeholders.
4. A firm must work to ensure that future generations are taken care of by conducting business that does not put the environment and/or people at risk. Firms must use their knowledge to improve processes so that waste is minimized.
Check out the book today and find out how more companies can position themselves for long-term success, work to benefit all stakeholders, and ultimately be able to take care of future generations!