Governance in practice: The real economic challenge for the leaders of a listed company part 2: Formulating an effective response

In Part 1 of this article published in December, we introduced the idea that even under a business paradigm that gives primacy to the interests of shareholders, the primary economic objective and the real business challenge for the leaders of publicly listed companies is not to create shareholder wealth per se. Instead, it is to build enduring institutions that can create value for customers and wealth for shareholders on an ongoing basis.