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Scorecard

In: Philosophy and Psychology

Submitted By Marimurphy
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Maximizing shareholder value versus meeting the needs of all stakeholders.

I did not grow up in New England and have only lived here for 10 years so Market Basket was relatively new to me. I certainly didn’t know about the higher wages and benefits the employees have enjoyed nor the family dynamics that operated within the company. It does seem odd that a company could have 2 cousins with the same first and last name wrestling for control of a multigenerational business, but truth can be stranger than fiction. After reading the article and watching the video, it reminded me that the Market Basket battle played out right here in our local community. In particular I remember going into the Market Basket in New Bedford last summer and seeing all the shelves barely stocked and speaking with a few employees about their fervent support of the ousted CEO. As an aside, we have many Market Basket employees that receive their medical care throughout the Southcoast system so I certain can see the interconnectivity between a corporation and the community.

It’s been my experience that there are quite a few companies that do believe in meeting the needs of stakeholders and not just shareholder value. One in particular was Anheuser-Busch. When I lived in St. Louis, AB was an integral part of the community and its offices and original brewery anchored the southern section of the city. They paid higher wages, had generous benefits and even allotted 2 cases of beer per week to each employee. They named and built the baseball stadium and were a leading force to get the LA Rams football team to move to St. Louis. Many people relied on the value of the AB stock to finance their retirement or pay for a child’s education. However, several years ago they fell victim to family squabbling and a debate over shareholder value versus stakeholder needs. In the end the...

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