John O’Dea* | April 2014
Public value is defined as “using government assets to produce a good and just society”. The term was first mooted in 1995 by Mark H. Moore – Hauser Professor of Non-Profit Organisations at the Harvard Kennedy School of Government – in his book Creating Public Value (Harvard University Press). Public value in public sector management is the equivalent of shareholder value in private sector organisations. Shareholder value is a business term which implies that the ultimate measure of a company’s success is the extent to which it enriches its shareholders (owners) by paying dividends and/or causing its stock price to increase in value.
By the same token, the ultimate measure of a government’s success is the extent to which it enriches society as a whole. The difference between public and private entities is that in the former, citizens are both the shareholders (as taxpayers) and the clients (as recipients of public services). Public services are distinctive because they are characterised by claims of rights by citizens that have been authorised and funded through a democratic process.
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