Any company should choose the strategy of development. The strategies can be long-run, profitable for all the stakeholders, or short-run, aimed at maximizing the shareholder’s profit. A long-run strategy implies that the owners of the company make the company more attractive for its customers and other stakeholders. A short-run strategy, on the opposite, implies that the shareholders strive to gain the maximum profits by any means. The statement recently issued by the Business Roundtable shows that the companies accepted the efficiency of the long-time strategy.
There are different reasons for which delivering value to all stakeholders is more efficient and profitable for the company. First of all, this is a win-win strategy, where all the sides gain some profit. The customers feel that they are cared for and that the company is not perceiving them as just the source of money, but is interested in the collaboration. The company, in its turn, creates a better image and has more regular customers. Besides, such companies support their communities, which also benefits the company’s reputation and makes people trust the brand. The company becomes an important part of the community. Moreover, such strategy also is profitable for the suppliers, as the companies deal ethically with them. Honest and transparent relations with all the stakeholders, meeting a common mission, and active improvement of the communities is the key to success.
On the contrary, the short-term strategy can be effective, but it is less likely to make the stakeholders trust the company. The company is not perceived as a useful part of a community which cares about some greater goals than maximizing profit. Thus, the strategy described in the Business Roundtable statement is a win-win one, which is profitable for all the stakeholders.