Covid has put "stakeholder capitalism" on steroids
What: a redefinition of the role of stakeholders
Why it is important: In 2019, the US Business Roundtable redefined “the purpose of a corporation to promote an economy that serves all Americans ”. It comes with five commitments — to customers, employees, suppliers, communities and shareholders.
Stakeholder capitalism demands that companies should save the planet, increase diversity, ensure the right standards along the whole of the supply chain, get rid of the gender pay gap, take responsibility for its employees’ health (physical, mental and financial), as well as conduct a profitable retail business through a series of rolling lockdowns. Is this a reasonable expectation?
The provocative piece in the Financial Times argues that the burden may be too heavy for companies to carry alone.
Covid has put "stakeholder capitalism" on steroids