Stakeholder capitalism: the notion that a firm focuses on meeting the needs of all its stakeholders: customers, employees, partners, the community, and society as a whole
Financial Times (12.19): The FT’s Gillian Tett, Katie Martin and Andrew Hill outline the case for reinventing and reforming the model of free enterprise capitalism to deliver more profit with purpose and examine where opportunities for this change might lie in the year ahead
The long-term health of free enterprise capitalism will depend on delivering profit with purpose. Companies will come to understand that this combination serves their self-interest as well as their customers and employees. Without change, the prescription risks being far more painful.
- Revisiting the Business Roundtable’s ‘Stakeholder Capitalism,’ one year later – 19.08.20
- A Good Year for Stakeholder Capitalism – 20.08.20
- Why America’s CEOs Are Talking About Stakeholder Capitalism – 21.11.19
Steve Denning, Forbes (01.20): (…) In opting for stakeholder capitalism, Schwab missed a better option: customer capitalism. The most successful firms today are those that pursue what Peter Drucker long ago saw to be “true North” for a corporation: “there is only one valid purpose of a corporation: to create a customer”. Generating fresh value for customers is the foundation the basis for generating benefits for all the stakeholders. To be sure, Drucker also saw that there were many other things firms needed to take care of, including safety, integrity, legality, sustainability, and inspiring workplaces, but the overriding goal, the raison d’etre of the firm, which all its forces of a firm must single-mindedly support, if the firm to survive, is to create customers.
Read part 2: The Triumph Of Customer Capitalism