Shareholder-centric

Adjective used to describe a business approach or corporate strategy that prioritizes the interests and financial returns of shareholders above other stakeholders, such as employees, customers, or the community. This model is often critiqued for potentially neglecting broader ethical considerations in favor of maximizing shareholder value.

Shareholder-centric meaning with examples

• The company's Shareholder-centric policy led to several controversial decisions, including layoffs and reduced environmental initiatives, all in the name of boosting quarterly profits.
• Investors were enthusiastic about the new CEO's Shareholder-centric vision, believing that a strict focus on return on investment would drive up stock prices significantly over the next fiscal year.
• Critics argue that a Shareholder-centric framework may jeopardize long-term sustainability, as firms prioritize immediate financial gains over employee welfare and product quality.
• The board of directors adopted a Shareholder-centric approach, which involved cutting costs and reallocating resources to projects with the highest return on investment, regardless of their potential impact on other stakeholders.