Stakeholder Capitalism Fails If It’s Just Talk
Companies will have to prove they’re committed to goals beyond maximizing shareholder value.
Bloomberg, August 21, 2019
Some kudos are in order for JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon, and chairman of the Business Roundtable, for driving these changes. He has been discussing the need for a more inclusive form of capitalism, both in public speeches and in his letters to shareholders, for some time.
But turning this aircraft carrier around won’t be easy, in large part because of the group’s own history. Indeed, the Roundtable has spent most of the past four decades advocating against the interests of those exact stakeholders. To cite some of the more notable examples . . .
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I originally published this at Bloomberg, August 21, 2019. All of my Bloomberg columns can be found here and here.