システム情報系　社会工学域

2019年度 ファカルティ・セミナー

（Faculty Seminar）

This paper argues that the current paradigm of value creation has led to a number of unacceptable outcomes. Exaggerated by executive compensation incentives focused on short-term results, the model of shareholder wealth maximization spurs short-term profits that fail to take into account those costs that are externalized to other stakeholders. We argue that the all-inclusive costs can far exceed those explicitly accounted for and that their magnitude are often such that they outweigh the short-term gains by a wide margin. The cascading nature of these costs, the growing voice of other stakeholders in support of their interests, the erosion of public trust, and the increasingly dire state of the global environment have accelerated the pace of calls for the adoption of a model of sustainable value creation; one in which shareholders’ wealth is maximized subject to the constraint that none of the other stakeholders become significantly worse off.   We present a simple example of a valuation model that incorporates such a principle. We also argue that markets, education, and regulation represent the three indispensable cornerstones of a sustainable value creation framework.