Stakeholder capitalism is the idea that a corporation should focus on the needs of all its stakeholders. Shareholder, customer, supplier, employees, community, and society as a whole. It has infected nearly all corporations. Like all bad ideas, it hides behind the veil of “being good”.
It offers a great foundation for PR. If you can claim a concern about everyone, who can be opposed. Compare that to maximizing shareholder value. Doesn’t that sound like you will do anything to make money?
The lefty’s use this as a trick to force their agenda.
The public has been told that their are marginalized groups and the need for equity. Political groups then use this to ask, given stakeholder capitalism, what Miss CEO are you doing to help marginalized groups? I have a DEI organization and we are making strides to hire and promote marginalized people.
Are the shareholders asking or just leftist individuals or groups? Is Larry Fink asking because he is a lefty or is he asking because the true shareholders care?
There is a difference between running your business as per the owners and being forced to do things to satisfy the pressure from political organizations.
In a business, the ultimate decision-maker is the owner or owners, not the managers. The responsibility for deciding whether to adopt stakeholder capitalism or prioritize specific values lies with those who own the company. Corporate managers don’t have the authority to unilaterally choose stakeholder capitalism; it’s a decision within the purview of the owners.
If the owners desire value maximization, that becomes the company’s focus. Conversely, if the owners prioritize employees, diversity, or addressing global warming, the company’s attention shifts accordingly. In essence, the owners’ preferences guide the overarching direction of the company.
It is like your neighbor shouting at the crew painting your house that the owner wants the house painted purple.
All that needs to be said is that corporations must follow the desire of the owners. There is a reason they don’t say this while trying to convince everyone that stakeholder capitalism is really what the owners want.