Shared Value before Shareholder Value
The principle of Shared Value before Shareholder Value is part of the Manifesto for Sustainable Software Development created by software developers, designers and entrepreneurs to call for responsibility among our peers to prioritize sustainability — not only in terms of ecological impact but also in inclusivity, ethics, and the long-term resilience of the digital systems we create. By prioritizing Shared Value over Shareholder Value when designing our software, we may contribute to a shift toward a better digital future where technology serves the needs of society, humanity, and the planet — rather than exploiting human psychology for the benefit of a few.
This manifesto is a work in progress, and we are actively seeking feedback, ideas, and support. We invite you to join the conversation and contribute in any way that resonates with you — whether big or small, every voice matters.
Shareholder value has long been a central driver of business growth and innovation, but prioritizing shared value is essential to building platforms that benefit society while ensuring long-term sustainability. Shared value focuses on aligning the interests of all stakeholders—users, employees, communities, and the environment—rather than exclusively serving shareholder profits. This principle acknowledges that sustainable success depends on creating systems that contribute to societal well-being, support ethical practices, and avoid exploitative behaviors that prioritize short-term gains over lasting impact.
Profit-driven models that prioritize shareholder interests above all else often lead to what has been termed “entshittification.” This phenomenon describes the gradual degradation of user experiences as platforms shift focus to extracting maximum profit from their user base. The Nordisk Tænketank for Tech og Demokrati (2023) warns against this pattern, advocating for platforms to align their operations with democratic and user-centered principles. Winner (2020) similarly critiques the societal harm caused by profit-centric technologies, calling for designs that incorporate ethical and sustainable values from the outset.
The symptoms of entshittification are clear: platforms become increasingly dependent on exploitative practices, such as invasive advertising models, manipulative algorithms, and restrictive ecosystems that lock users in and limit their autonomy. This prioritization of profit over shared value results in systemic harm, including the erosion of trust, reduced market diversity, and widening inequality. As platforms extract more value from users while giving less in return, they risk alienating their core audiences and undermining their long-term viability.
Avoiding these pitfalls requires a commitment to shared value. Governance models such as B-Corps, cooperatives, or foundations offer frameworks for aligning platform interests with societal good. For example, retaining intellectual property in a foundation with public influence on the board ensures that decisions are guided by ethical considerations rather than shareholder returns. These models allow platforms to generate profit responsibly, ensuring that revenue streams align with user well-being rather than exploitative practices.
Designing systems with shared value in mind involves creating platforms that empower users, prioritize transparency, and foster accountability. Open standards and APIs enable interoperability, giving users the freedom to move between platforms and integrate with other tools without being locked into restrictive ecosystems. Data portability, a principle emphasized by GDPR, ensures that users retain control over their information, reinforcing trust and loyalty. Transparency in decision-making processes allows stakeholders to understand the rationale behind platform actions, creating a culture of accountability.
Examples of shared value in action include platforms that prioritize community-driven revenue models, such as offering premium services or collaborative funding approaches, rather than relying on manipulative advertising. Decentralized governance structures that include user representation ensure that decisions reflect the interests of the broader community. These practices not only benefit users but also create resilient ecosystems where innovation thrives and trust is maintained.
Failing to prioritize shared value risks undermining every other principle in this manifesto. Community over individualism collapses as platforms exploit individual behaviors for profit. Reflection before reaction is discarded in favor of algorithms that drive impulsive engagement. Transparency over hidden algorithms is sacrificed to protect profit-driven opacity. Inclusivity before simplicity is abandoned as features cater to lucrative demographics rather than the diverse needs of users. Environmental awareness before speed is ignored as resource-intensive practices prioritize short-term gains.
These cascading failures illustrate how essential shared value is to creating sustainable, ethical platforms. Without it, platforms devolve into extractive systems that prioritize shareholder profits at the expense of users, communities, and the environment. By embracing shared value, platforms can avoid these pitfalls, fostering systems that balance profitability with responsibility and innovation with equity.
Designers and entrepreneurs have a critical role to play in championing shared value. This involves making intentional choices, such as adopting governance models that reflect user interests, designing systems that empower and protect users, and committing to ethical and transparent practices. These efforts do not preclude profitability; rather, they create the conditions for long-term success by fostering trust, resilience, and societal progress. Shared value before shareholder value is not only an ethical imperative but a strategic advantage, enabling platforms to thrive in a world increasingly demanding fairness, accountability, and sustainability.