MBA books teaches you that – shareholders are the most important stakeholders of the company and that company’s main objective is to increase shareholder value.
However the founder of Alibaba.com, biggest online company in China, says that for him “the most important groups are customers and then employees. He says that customers are the ones who pay him and employees are the ones who stick with him but shareholders come and go. And for this reason, shareholders come last for him.”
That’s a very interesting point that he makes. Read his other two company philosophies on TechCrunch here. Watch the full interview here.
It’s sure that customer pay money. But we can’t ignore employee as well as share holders. All one keeps their own importance…….
It’s an impressive quote though, but quite handy when it comes to applying.
That is quite a valid point. It’s true that shareholders are not really directly linked to your company or services in any way other than the shares they bought, whereas customers are direct patrons for your company. They care about your product enough to use it for themselves. So ultimately, they could be seen as more important to you and your business.
Shareholders are very important person for a organization. When company get profit shareholders automatically..
I think a company needs to take care of all three groups to really be successful. While it would be great to ignore shareholders and just take care of customers and employees, that is not practical. If you don’t take care of your shareholders, you could find your share price dropping.
Great philosphy. Wish my former company would have followed the same. I see them now slowly going down the drain.
Shareholder’s are important to keep solid within any organization.
That’s an interesting quote. Jack Ma is an outstanding person. :)
Yes, I agree with your point that “shareholders are the most important stakeholders of the company
” as well as many aspects of handling the business and how to lead the organization. Plus, it also teaches that one who don’t care about the shareholders they are no where in the market. That’s my experience. No offence please. Thank you :)
the most important groups are customers and then employees << i like this QUote! thanks
I agree, customers and employees should always come first.
as i think all the three group are important at their place. a customer who give you business are important that he run your business. the employees assist you to run the business and helps to provide the best services, and shareholder support you by funding in your business.
I think many companies are more worried about their shareholders rather than their customers or employees. They do everything they can to ensure share prices rise and investment dollars keep coming in. This often results in sacrificing service levels or employee benefits.
The customers and the employees should come first; however, usually if both those groups are happy, then shareholders also reap rewards.
I really like that point of view actually, without the customers at the end of the day the business is nothing! Also he is right to say about the employers they are vital in keeping the customers happy and business going as well!
Till then,
Jean
Wish my former company would have followed the same.
The only thing that I am sure of is that if you want to run a successful company, then the customers have to come first. Beyond that, you could make valid points on both sides as to whether the employees or the shareholders should come in second. But, definitely the customers have to be happy or there is no business.
as i think all the three group are important at their place. a customer who give you business are important that he run your business. the employees assist you to run the business and helps to provide the best services, and shareholder support you by funding in your business.
leblebiseas
If more companies had this view, shareholders would be better off.
I Think, the most important groups are the employees.
This approach is so true, I think it can be easy to lose sight of this principle
Surprised he hates shareholders..I don’t know how to explain this but shareholders also plays an important role next to customers and employees..if shareholders failed to get his share he will be in a big mess.
Customers and employees are good for any business. Customers satisfaction is very much needed in this competitive world.. I love it!
It’s impressive ……….I think customers and employees comes first…… nice philopsphiy…..
Enjoyed getting to read the interview. Always enjoy reading Jack Ma’s work.
- Robert
Pretty interesting idea. In fact I’ve never before heard it said that a company should favour shareholders above customers. That doesn’t strike me much as a philosophy that makes for a good client experience – rather a means to save one’s skin! In other words putting shareholders first means knowing on which side your bread is buttered. ^^
Thanks!
Pete
Shareholders are in third place after customers and employees.
The saying is correct that the customer is always right