Wednesday, October 6, 2010

Shareholders vs Stakeholders

In recent couple of years the phrase 'increase shareholder value' is increasingly prominent in annual reports of companies. Role of stakeholders is not well understand. Recent financial crisis that resulted from taking excessively risk to 'increase shareholder value' end up being bailed out by taxpaypers $(stakeholder) in the US.

Shareholders can run quick with the $ while stakeholders(common men) are left to clean up the mess. In S'pore there's more & more tension particularly in public transport. In bid to increase shareholder value, the stakeholders(populace) are increasingly packed like sardines. Gains by minority few at expense of the majority.

Trend seem to have started in the US in Reagan administration & the trend in S'pore became obviously on steriods in the 2000s. Govt policies in recent years have disenfranchised the majority of the 'stakeholders'. Most recent repair attempt reported is holding the passing out parade of conscript recruits at Marina floating platform to remind these young stakeholders what they are defending. I'm afraid is another futile attempt...

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