Before him, it was more or less understood that business owners had a responsibility to do what was best for their customers, their employees, their communities, and their company’s long-term sustainability; the companies that didn’t (or didn’t at least make it look like they were) were looked down upon.
Welch was the first one to popularize the notion that short-term shareholder value was the CEO’s highest priority. He normalized companies’ c-suites being cutthroat, craven capitalists.
To be sure, not everything that’s wrong with the world today can be laid at his feet. But late-stage capitalism can.
Jack Welch’s whole business philosophy.
Before him, it was more or less understood that business owners had a responsibility to do what was best for their customers, their employees, their communities, and their company’s long-term sustainability; the companies that didn’t (or didn’t at least make it look like they were) were looked down upon.
Welch was the first one to popularize the notion that short-term shareholder value was the CEO’s highest priority. He normalized companies’ c-suites being cutthroat, craven capitalists.
To be sure, not everything that’s wrong with the world today can be laid at his feet. But late-stage capitalism can.
It was more Milton Freedman’s philosophy. Welch was teacher’s pet who implemented it to the fullest extent.