David Packard: Profit Stockholders

Meaning of David Packard Money Quote: saying a business has to do more than to be profitable – it owes employees a debt. David Packard said:
 

 

“A company has a responsibility beyond making a profit for stockholders; it has a responsibility to recognize the dignity of its employees as human beings, to the well-being of its customers, and to the community at large” — David Packard

In this quote, David Packard seems to be expressing the view that businesses have ethical and social responsibilities that extend beyond just maximizing profits for shareholders. He argues companies should also recognize the inherent worth and dignity of employees as human beings with needs beyond their jobs.

Additionally, Packard believes businesses have a responsibility to consider the well-being of customers by producing quality products, and to give back to the broader community in some way.

This suggests Packard advocates for a concept of corporate social responsibility where companies acknowledge obligations to stakeholders like employees, customers and society, not just shareholders. He implies this holistic perspective is important for businesses to have a positive impact beyond the bottom line.

Birthday: September 7, 1912 – Death: March 26, 1996

David Packard on Corporate Assumptions

David Packard Money Quotation saying the public makes incorrect assumptions about company motives. David Packard said:
 

 

“I think many people assume, wrongly, that a company exists solely to make money” — David Packard

In this quote, David Packard seems to be challenging the assumption that a company’s only purpose is to generate profits. He appears to believe it is a misconception to view business solely as a money-making endeavor. Packard’s statement implies that companies have a broader role and can contribute value in other ways beyond their financial performance alone.

His view suggests businesses should also aim to create quality products and services, treat employees and customers well, and give back to communities. So Packard seems to be advocating for a concept of corporate social responsibility and multi-stakeholder stewardship, where positive impacts on various groups like workers, consumers and society are also important goals alongside profitability for shareholders.

David Packard on Reason for Existence

David Packard Money Quotation saying a corporation must have more than a catch phrase to base their reason for being on more than profit. David Packard said:
 

 

“Money is an important part of a company’s existence, if the company is any good. But a result is not a cause” — David Packard

In this quote, David Packard seems to be acknowledging that financial resources and profitability are certainly important factors for a successful business. However, he also appears to be arguing that money alone does not drive or create a company’s success – it is the result of success, not the cause.

Packard seems to be saying that while revenue is necessary for a quality company to operate and grow, the true causes of a business achieving profits and stability are the value, quality and impact of its products or services.

His statement implies the focus should be on first developing excellent offerings that benefit customers and society, and money will follow as a natural byproduct rather than the primary motivation. Packard suggests profits are best viewed as an outcome of providing value to stakeholders, not an end in themselves.