The idea of placing a corporate philosophy above shareholder value has emerged in discussions of corporate integrations. While a philosophy can serve as a free pass, it has also been pointed out that it comes with neither time limits nor numerical targets.
Amid frequent remarks by Japanese corporate executives to the effect that shareholders are important but are not the only stakeholders, there is said to be a corporate philosophy placed above shareholder value.
The view that a corporate philosophy is the founder's vision and represents the company's reason for being is presented. The argument is that shareholder value follows later, as the result of realizing the corporate philosophy.
Placing a corporate philosophy at the top is said to give executives a reason not to change the company's direction, business strategy or management team, and it may be used as a free pass for explaining weak share prices and other matters as management consistent with the corporate philosophy.
It has been pointed out that a corporate philosophy has neither time limits nor numerical targets, and that it is the executives themselves who decide what is consistent with the corporate philosophy.