09/03/2024

Costco Found the Antidote to the Ills of Shareholder Capitalism

Its approach approach maximizes growth without compromising ethics

Shareholder capitalism has increasingly come under scrutiny for its focus on maximizing shareholder returns at the expense of broader stakeholder interests. Since the 1970s, this model has driven many senior leaders to engage in cost-cutting measures and strategies aimed at boosting short-term stock prices, often at the company’s long-term detriment.

Given the dominance of shareholder capitalism, one might question whether viable alternatives exist.

Can a company deliver outstanding financial returns without adhering to a shareholder-first mentality? An examination of Costco Wholesale Corporation’s performance over nearly four decades provides compelling evidence that there is indeed a better option.

Please select this link to read the complete article from SmartBrief.