"No institution can possibly survive if it needs geniuses or supermen to manage it. It must be organized in such a way as to be able to get along under a leadership composed of average human beings."
--Peter F. Drucker, Management Guru
Long before there was Sarbanes-Oxley, there was a well-recognized duty by the CEO to be accountable to shareholders. By virtue of your position as leader of the company, you must use your best efforts and best judgment on all matters related to the corporation.
Being accountable to shareholders means that you must make the hard financial, management, business and labor decisions in the best interests of the company, but it also requires you to protect the long-term interests of its equity owners.
Respecting shareholders means that you don’t lie, you don’t hide the ball, and you don’t employ sleight-of-hand tricks that make you look good today, but leaves them holding the bag tomorrow.
In essence, you work for the shareholders, the owners of the company. Treat them as if they were your boss, and you will not go wrong. Communicate openly and often. Open up the company to its owners and investors and find a way to invite them in.
After all, respect is a two-way street—it goes both ways.
(c) 2008 Adonis E. Hoffman
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