organization

Psyche Revived by Cupid’s Kiss is a marble sculpture made between 1787 and 1793 by Antonio Canova. Influenced by his numerous studies of antique art, Canova had developed a unique style, in which his characters expressed refined forms and calm attitudes. In the sculptor on the cover page he masterfully portrays the loving embrace of two major characters from Greek mythology: Cupid, the son of Aphrodite, and the soul, Psyche, also the most beautiful being in the world. The embrace bares the height of love and tenderness immediately after the lifeless Psyche is awakened with a kiss. Psyche had fallen unconscious after completing the series of tests and trials required of her by Aphrodite to earn the merit of reunion with her son, Eros. Upon completion of the trials, Zeus bestows immortality upon Psyche, and she and Eros are married; their union gives birth to a child named Pleasure. One of the messages that gripped us was how this myth of the Psyche, the most beautiful being in the world, signifies the beauty of the human psyche, and perhaps even the collective psyche, and the necessary major transformations it must go through in its development.

Governance and management of organizations has centered on the idea that management’s objective is, or should be, maximizing value for shareholders. This idea has pervaded the way of thinking in the financial community and much of the business world, and has spread itself across a wide range of topics—from performance measurement and executive compensation to shareholder rights, the role of directors, and corporate responsibility. Furthermore, this thought system has been embraced by institutional investors, managers, lawyers, academics, and even regulators and lawmakers. And its precepts have come to be widely regarded as a model for “good governance.” However, a better model is to have at its core the health of the enterprise (Eros or Cupid) rather than near-term returns to its shareholders (Psyche). Such a model recognizes that corporations are independent entities endowed by law with the potential for indefinite life (immortality). With the right leadership, organizations are to be managed to serve markets and society over long periods of time.