Policy Statement -- Opinions?



What do people think of this approach to a policy statement?
(note: company is becoming registered to ISO 9001/14001/OSHAS 18001)

"XYZ Co. is committed to enhancing shareholder value through
- customer satisfaction
- compliance with applicable laws and regulations
- pollution prevention
- safe work environment

We will achieve this through employee involvement and continual improvement."

There is some discussion about promoting the idea of committment to "enhancing shareholder value", but what I like about this is that it is ultimately honest. It may be the most honest policy statement I've read.


M Greenaway

Seems to lack 'customer focus' with that bit about shareholder value.

Shouldnt the sharholder value be a result of customer satisfaction, and not vice verca ?


I think that's exactly what they are trying to say, that they are going to increase value (for the shareholders) by satisfying their customers, etc.



Here's the response to that:

- committment to comply with requirements is implied by "customer satisfaction" (customers are only satisified if we meet their requirements, though of course customer satisfaction is more than just that)

- continual improvement includes continual improvement of effectiveness, doesn't need to be said (not sure i agree, but they understand it this way, so fine).

As for it being honest, I agree that the words themselves don't prove anything; however, the thought is that this policy reminds us that the ultimate objective of the organization is not to satisfy customers or whatever but to increase shareholder value.

I have read so many policies that say something like "we are committed to quality" or some such, and people just laugh at it, knowing that ultimately the company is committed to making $$. What this does is tie that ultimately truth to what the system is promoting (cust sat, safety, environmental etc).

M Greenaway


Dont you think that recent history suggests that those companies that put sharholder value above all else are often found to be extremely dis-honest, i.e. Enron, etc


Companies like Enron only pretended to put shareholder value above all else. A few greedy people put their own personal profits above all else, in fact, and the common shareholders were the real losers ultimately.



What measurable objectives can you come up with that directly reflect what you say in your policy. I think it would be tough. We have our objectives tied to every statement in our policy and can show how we are performing. We just had our ISO-2000 audit and this was a strong point.
Top Bottom