In most Western countries, the top priority of for-profit businesses is to enhance shareholders’ value. In Germany, solid growth is the most crucial goal for many companies, especially in the case of the so-called Hidden Champions. Interestingly, top Japanese execs believe that a company is all about the quality of its products or services.
The differences reflect historical, economic and cultural differences. For example, in the West, Friedman’s idea (Friedman, 1970) that enterprises’ only social responsibility is to increase shareholders’ value was one of the most critical cornerstones of modern economics and business management.
References
- Friedman, M. (1970). The Social Responsibility of Business Is to Increase Its Profits. In: Corporate Ethics and Corporate Governance. [online] The New York Times Magazine, pp.173–178. doi:https://doi.org/10.1007/978-3-540-70818-6_14.