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Stakeholders

The figure below shows the major stakeholders associated with a profit making institution. Except for the environment, which ironically but generously supplies the raw resources from which all value and profit are extracted, everyone wants the biggest piece of the profit pie they can get.

Since management is the biggest influencer of org performance, the dudes in charge feel the greatest pressure to generate profits for themselves and all the other stakeholders. In order to relieve themselves of this pressure and provide themselves with the largest share of the treasury, unscrupulous executive “leadership” teams (and not all of them are so self absorbed) do everything they can to distance themselves from the “other” stakeholders:

  • They hire lawyers and lobbyists to fend off taxes and regulations imposed by governments to keep their behavior in check
  • They hand pick a group of yes men/women for their board of directors to keep the greedy owners one level removed from themselves
  • They keep their workers in check via classic, subtle fear inducing tactics
  • They ignore the environment – because it unselfishly makes no direct demands upon them

Great leadership teams don’t spend all their waking hours playing defense against the “others” and justifying their exorbitant compensation. They think systemicly and make compassionate decisions that balance the needs of all those involved in the enterprise.

And now, as a preview to next week’s self-righteous do-as-I-say-and-not-as-I-do sermon………………

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