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Wealth & Wellbeing – Volume 2: Profit & Values published now

by Imdat on September 24th, 2013

The second volume in this ten-volume series is now ready and published. Purchase the Kindle version if you have a Kindle. If you have iBooks, you may purchase at Apple’s iTunes iBooks Store

Until then, the final “Conclusion” in the book (258 pages) was:

Managing in a Troubled, Ethical World full of Informed Consumers and Employees can be a quite daunting task.

Managing for profit and for values at the same time is seen as an anti-thesis, as the opposite poles where the manager has to make a compromise.

I argue that it is quite the other way around: managing for profit without managing for value(s) is what reduces overall value creation, reduce the potential for increasing the wealth and wellbeing of people and humanity in its entirety and will, over long, be the reason for many large corporations to decline and shutdown.

Managing for value(s) is like any investment into new products or services companies do day-in, day-out. It pays off by creating the possibility to generate a steady-stream of long-term revenues and profits.

No sane shareholder will fire a board or a CEO because they managed for value(s) and profit in tandem. No sane board will fire a CEO or a manager for acting ethically, even if that means that one loses a business to a competitor. Provided the value(s)-oriented management is used in marketing and communications, it can be a major source of revenue and profit growth. It can be one of the major contributors of competitive advantage and it will help sustaining the company over generations if not centuries.

Most decade- or centuries-old companies declined because their managers forgot the intricate combinations of values and profits. There are no profits without values. But managing solely for values without managing equally well for profits will doom the company faster than you can say “bankrupt” (as happened with with Nokia). Similarly, once managers forget ethical behavior and only “follow the money”, the company is equally doomed: when managers, in the interest of “a quick buck”, only manage for profits. It’s the weighted average of both that creates sustainable and successful companies. Go for it.


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