Managing Corporate Responsibility and Sustainability

Abstract

William W. George was CEO of Medtronic between 1992 and 2001, and later Chair of this high-tech medical company. A company which produces electronic devices to alleviate pain, among others, was indeed a mission-driven company and values-centered organization and one with an adaptable business strategy. It showed a considerable and sustained growth, at least during George’s tenure as CEO. It reported 64 consecutive quarters of increasing revenues and earnings. The introductory words of this chapter belong to his keynote address on receiving the Distinguished Executive of the Year Award at the Academy of Management’s annual conference in 2001. After his retirement, George taught at IMD, Switzerland, at Yale School of Management and at Harvard Business School, and wrote several books. He explained that he chose Medtronic, after years of professional life, because he found there all he wanted: values, passion and the opportunity to help people suffering from chronic disease.²

… those companies that devote themselves to maximizing shareholder value as their primary purpose will ultimately fail to do so in the long run. The best path to long term growth in shareholder value comes from having a well-articulated mission that employees are willing to commit to, a consistently practiced set of values, and a clear strategy that is adaptable to changing business conditions.¹

WILLIAM W. GEORGE (b. 1942) Former Chairman and CEO of Medtronic