{"id":21047,"date":"2022-11-09T13:57:59","date_gmt":"2022-11-09T13:57:59","guid":{"rendered":"http:\/\/healthmedicinet.com\/business\/why-stakeholder-capitalism-has-taken-the-spotlight\/"},"modified":"2022-11-09T13:57:59","modified_gmt":"2022-11-09T13:57:59","slug":"why-stakeholder-capitalism-has-taken-the-spotlight","status":"publish","type":"post","link":"https:\/\/healthmedicinet.com\/business\/why-stakeholder-capitalism-has-taken-the-spotlight\/","title":{"rendered":"Why stakeholder capitalism has taken the spotlight"},"content":{"rendered":"<p>Photograph If you think the CEO agenda is jam-packed now, consider this: Richard Oldfield, PwC\u2019s global markets leader, says that in a world in which trust is lacking, particularly in government, \u201cemployees are expecting business leaders to actually fill that trust gap, and they expect them to stand up for the ethical and important decisions that they believe need to be dealt with.\u201d<\/p>\n<aside class=\"articleList thumbLeft outdentLeft related\">\n<ul><!-- AWCDIV:hide:begin:44587383 --><\/p>\n<li>\n<article class=\"clearfix\"><img loading=\"lazy\" decoding=\"async\" src=\"image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"\/media\/image\/44584725_thumb3_150x80.jpg\" class=\"awcLazy\" width=\"150\" height=\"80\" border=\"0\" alt=\"Mature businesswoman talking to her colleagues while examining chart on a meeting in the office\" title=\"Mature businesswoman talking to her colleagues while examining chart on a meeting in the office\" \/><\/a><\/p>\n<\/article>\n<\/li>\n<li>\n<article class=\"clearfix\"><img loading=\"lazy\" decoding=\"async\" src=\"image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"\/media\/image\/42475236_thumb3_150x80.jpg\" class=\"awcLazy\" width=\"150\" height=\"80\" border=\"0\" \/><\/a><\/p>\n<\/article>\n<\/li>\n<li>\n<article class=\"clearfix\"><img loading=\"lazy\" decoding=\"async\" src=\"image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"\/media\/image\/44316767_thumb3_150x80.jpg\" class=\"awcLazy\" width=\"150\" height=\"80\" border=\"0\" alt=\"A group of small yellow and blue arrows gather behind a larger teal arrow, all of which point in the same direction against an orange background.\" title=\"A group of small yellow and blue arrows gather behind a larger teal arrow, all of which point in the same direction against an orange background.\" \/><\/a><\/p>\n<\/article>\n<\/li>\n<p><!-- AWCDIV:hide:end:44587383 --><\/ul>\n<\/aside>\n<p>For today\u2019s CEO, creating shareholder value is a must. But to address the increasingly difficult pressures affecting businesses, corporations and their leaders must play their part in finding solutions. That\u2019s where stakeholder capitalism comes in. So, what motivates businesses to want to help tackle these issues? Who\u2019s driving this demand, and, given that stakeholders often have conflicting views, can it work in practice? That\u2019s the topic that Oldfield and Alison Taylor, the director of Ethical Systems at NYU\u2019s Stern School of Business, address in Episode 6 of our <em>Take on Tomorrow<\/em> podcast series<\/a>.<\/p>\n<p>With powerful influences like BlackRock CEO Larry Fink calling on companies to demonstrate social responsibility, the sharper focus on stakeholder capitalism comes as no surprise. Even more pronounced is the pressure companies are receiving from their own employees. \u201cSince the beginning of the pandemic, I think we\u2019ve seen this huge rise in employee power and employee voice,\u201d said Taylor. \u201cI think that is a huge strategic challenge today to manage, because you can\u2019t really control voice, and you can\u2019t really control speech anymore.\u201d<\/p>\n<p>The luxury that businesses used to enjoy in claiming neutrality toward controversial topics and politics has changed dramatically. Consider the 2014 Black Lives Matter protests over a police killing in Ferguson, Mo., for instance. \u201cCompanies would not touch that with a bargepole,\u201d Taylor said. Fast-forward to 2021: CEOs were lining up to comment on the George Floyd murder verdict, on a police killing that had nothing to do with business. \u201cThat\u2019s a pretty crazy change in seven years,\u201d Taylor continued. \u201cAnd I think\u2026it seemed like a good idea for a lot of these companies to start weighing in on these issues.\u201d Why? Because silence, these days, is seen as collusion: \u201cThere\u2019s nowhere you can go to escape the risk.\u201d<\/p>\n<p>Silence, these days, is seen as collusion: \u2018There\u2019s nowhere you can go to escape the risk.\u2019<\/p>\n<p>But is it really practical for CEOs to weigh in on every issue? No, Taylor noted. They should pick their battles. \u201cI think what you\u2019ve got to do is an analysis of\u2026what issues you can really make a difference on. You should pick two or three. Lead with those, and stick to those. And if you get pressure on other things, you say, \u2018Not getting involved in that.\u2019\u201d<\/p>\n<p>\u201cIt\u2019s quite difficult to get the balance between doing the right thing, as you see it, and making sure that you don\u2019t alienate parts of either your employee base or your customer base,\u201d Oldfield added. \u201cI think the challenge for leaders\u2026is how you bring people together and harness diversity. And that\u2019s tricky in the current environment.\u201d<\/p>\n<p>Listen to the podcast in its entirety here<\/a>.<\/p>\n<aside class=\"sharing counts total\"><span>Share to:\u00a0<\/span><\/p>\n<ul aria-hidden=\"true\" class=\"tools\">\n<li class=\"twitter\"><span class=\"iconLabel\">Share on Twitter<\/span><i class=\"fa fa-twitter fa-fw\">\u00a0<\/i><\/a><\/li>\n<li class=\"linkedin\"><span class=\"iconLabel\">Share on LinkedIn<\/span><i class=\"fa fa-linkedin fa-fw\">\u00a0<\/i><\/a><\/li>\n<li class=\"facebook\"><span class=\"iconLabel\">Share on Facebook<\/span><i class=\"fa fa-facebook fa-fw\">\u00a0<\/i><\/a><\/li>\n<li class=\"email\"><span class=\"iconLabel\">Email this article<\/span><i class=\"fa fa-envelope-o fa-fw\">\u00a0<\/i><\/a><\/li>\n<\/ul>\n<\/aside>\n<aside class=\"tags\">Topics: ESG<\/a>, governance<\/a>, regulation<\/a>, stakeholders<\/a>, trust<\/a><\/aside>\n","protected":false},"excerpt":{"rendered":"<p>Photograph If you think the CEO agenda is jam-packed now, consider this: Richard Oldfield, PwC\u2019s global markets leader, says that in a world in which trust is lacking, particularly in government, \u201cemployees are expecting business leaders to actually fill that trust gap, and they expect them to stand up for the ethical and important decisions [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-21047","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/healthmedicinet.com\/business\/wp-json\/wp\/v2\/posts\/21047","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/healthmedicinet.com\/business\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/healthmedicinet.com\/business\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/healthmedicinet.com\/business\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/healthmedicinet.com\/business\/wp-json\/wp\/v2\/comments?post=21047"}],"version-history":[{"count":0,"href":"https:\/\/healthmedicinet.com\/business\/wp-json\/wp\/v2\/posts\/21047\/revisions"}],"wp:attachment":[{"href":"https:\/\/healthmedicinet.com\/business\/wp-json\/wp\/v2\/media?parent=21047"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/healthmedicinet.com\/business\/wp-json\/wp\/v2\/categories?post=21047"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/healthmedicinet.com\/business\/wp-json\/wp\/v2\/tags?post=21047"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}