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The move away from the narrow shareholder value form of capitalism requires the support of public policy.
Greed has been raised to some sort of high calling; corporations have been urged to ignore broader social responsibilities in favor of narrow shareholder value; chief executives have been regarded as if they alone create economic performance.
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By unusually narrow margins, shareholders also defeated resolutions that would have recouped bonuses from executives who failed to meet performance targets and would have allowed holders of 10percentt of the company's stock to call special shareholder meetings.
A commercial strategy of focusing on a narrow definition of shareholder value as simply the delivery of short-term profits has resulted in a hollowing out of much, though not all, of local journalism.
"Doing well by doing good" has become a popular business mantra: the phrase conjures up a Panglossian best-of-all-possible-worlds, the idea that firms can be successful by acting in the broader interests of society as a whole even while they satisfy the narrow interests of shareholders.
This doesn't mean good by shareholders' narrow standards but a far more inclusive bottom line.
Their predominant concern remains maximizing short-term shareholder value a narrow focus that Drucker decried.
Emboldened by their narrow victory Wednesday, Bank of America shareholder agitators continue to press for the removal of Kenneth D. Lewis as the company's chief.
But Hewlett-Packard's board has claimed a narrow victory in the shareholders' vote, even though the official result has yet to be announced.
"I wonder what George Cadbury, the religious (Quaker) founder, would have made of this mercenary deal, made in the narrow interests of the shareholders alone ?" asked tomnorton.
Where, as with mining companies, an entire sector has historically appointed directors from too narrow a social pool, shareholders are forcing change in the interests of better business.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com