In the continuation of our series exploring stakeholder capitalism – or the idea that businesses might improve societal outcomes by focusing on a broader mandate than profits alone – our experts review the benefits and drawbacks of the existing best-practice model: shareholder capitalism. What works, what doesn’t and what’s changed since Milton Friedman popularized the theory in 1970? Our experts weigh in on whether there are ways to improve outcomes within the framework of shareholder capitalism, or if stakeholder capitalism is ready to take its place.
With more business leaders than ever before embracing stakeholder capitalism – or the belief that companies should work to benefit all stakeholders, not just shareholders – myriad questions have arisen about the concept’s viability and potential for impact. The Kenan Institute has been working to respond, and today we are excited to launch a new series exploring the most pressing issues surrounding stakeholder capitalism. Kicking off the series is this week’s Kenan Insight, which takes a deeper dive into the buzzed-about world of ESG investing. We hope you’ll check it out, and look forward to engaging with you on this topic and others throughout the series!