Chapter MC, Problem 2.3DQ

Summary Introduction

Case summary:

Person N is the Chief Executive Officer (CEO) of Company P. She has been regular in the Top 20 most powerful women. The annual revenue of Company P is $63 billion and the stock market valuation is $165 billion. In 2006, Person N has declared the vision of Company P as “Performance with Purpose”. Environmental sustainability, human sustainability, and the whole person at work are the dimensions of that vision.

It acknowledges the importance of stakeholder strategy and corporate social responsibility. She stated that is not $\left(\text{Revenue}-\text{Cost}\right)$, it must be $\left(\text{Revenue}-\text{Cost}-\text{Cost to society}\right)$. Company C is the competitor of Company P. The stock appreciation of Company P is 50 percent higher than Company C between 2012 and 2017. Person N’s strategy is reaping the rewards.

To determine: Whether Person X is agreeing with the philosophy of Person N.