The Shareholders v. Stakeholders Controversy

As a small business owner myself I must chime in and agree with my fellow blogger Bob Capozzi about his opinions expressed as to the shareholders v. stakeholders controversy started by Karen DeCoster recently.

It reminds me a lot of when I bought my current business and was faced with such accounting entries as "goodwill" and such. Goodwill is said to be worth thousands of dollars in my case, but much more in others. Yet what exactly is it? Dunno, but I recognize it when I see it however.

And it is the same with the example Capozzi cited. If a business beats up on one of their key suppliers, that company is not especially inclined to be the best supplier it can be due to the "psychic costs the management lays on them." Very true, and good for Capozzi for ferreting out this insight too. Nice one Bob.

--Ali Massoud