Hello and welcome to the third of my Owl Wisdom Podcasts. This March 2020 edition focuses on the concept of stakeholder capitalism that is gaining ground around the world. Most importantly in the US, the hotbed of laissez faire capitalism, and also in parts of Western Europe.
In this edition I look at the origins of the idea of stakeholder capitalism, the evolution of Davos Manifesto from its early 1970s days when Klaus Schwab first thought of it, and what the Business Roundtable has adopted in the US just last year.
I also share my thoughts on giving the idea a stronger rationale, a raison d’etre, so that it is grounded in a sense of business obligation rather than a “nice-to-do” option for business, which always then provides it with an exit clause. We also need to consider what is required to make it work more effectively.
Have a listen and do share your thoughts as well. This discussion is live around the world right now and deserves greater attention. Below, you’ll also find additional reading material that might enhance your understanding of the subject.
Links for further reading:
Theory of The Firm: Managerial Behaviour, Agency Costs and Ownership Structure by Michael Jensen and William Meckling (1976): https://papers.ssrn.com/sol3/papers.cfm?abstract_id=94043
This edition of Owl Wisdom Podcast uses music tracks by Twisterium and Freebackgroundtracks.net in the intro and interlude sections and samples of Henry Mancini’s music for Breakfast at Tiffany’s from Archive.org in the main sections. Many thanks to them all.