What are organizations for? LO6370

Dr Ilfryn Price (101701.3454@compuserve.com)
Tue, 2 Apr 1996 02:23:29 -0500

Replying to LO6309 --


Your question

>Therefore, it appears to me that the best way to reduce the short-term
mindset of publicly-held companies is to develop management compensation
packages that reward long-term profit performance, and are not tied to
stock performance.

What does anyone think?

Yet again I agree but the individual/ wider society issue that you and I
have dialogued on before comes into play. Tom Lloyd [The Nice Company
1990] has a slant on your question. If enough of us demand of our own
brokers/ mutual funds/ unit trusts etc. etc. investment in Learning/
ethical/ 'green'/ whatever corporations then their cost of capital falls
as they have a preferential source. This then gives said companies a
source of advantage and - in theory - sets up positive feedback. Ethical
investment in other words - tried if I recall with some success in regard
to South Africa a few years ago. It seems IMSO to need a critical mass of
individual we's prepared to put our personal money where our [stated]
mouths are something easier to achieve if we feel we are part of a
collective endeavour [and therefor feel a better chance of individual

If Price
The Harrow Partnership
Pewley Fort Guildford UK


Dr Ilfryn Price <101701.3454@compuserve.com>

Learning-org -- An Internet Dialog on Learning Organizations For info: <rkarash@karash.com> -or- <http://world.std.com/~lo/>