Customer satisfaction: Business dealmaker or deal breaker?

IN AUGUST, the crème de la crème of America Inc known as the Business Roundtable, comprising 181 chief executives of major US companies, issued a new statement on the "Purpose of a Corporation". In the joint statement, they committed to improving the delivery of value to customers by way of "meeting or exceeding" their expectations. Business leaders also identified employees as important stakeholders and promised to compensate them fairly and foster inclusion, dignity and respect.

The commitment to customers and employees was followed by fair dealings with suppliers and social responsibility to the communities around them. Conspicuously, shareholder commitment was placed last on this list. This is striking.

Prioritising customers may seem like common sense, but the practice of maximising profit for shareholders' gains dates back to the 1980s. One by one, America Inc companies started meeting Wall Street expectations on a quarterly basis in terms of cost containment and revenue goals. They grew in share price and value, often at the expense of other stakeholders.