guide to stakeholders It is one of the four pillars of conscious capitalism, in addition to a more objective, conscious culture and conscious leadership. The term, which refers to parties interested in and affected by a business or organization, is central to the concept of capitalism. stakeholders, Used for decades by Klaus Schwab, the founder and executive chairman of the World Economic Forum, it designates a new role for companies in their relationship to people, society and the planet, to reduce their impacts while creating wealth and well-being. in the meaning of. All.
of capitalism stakeholders Opposes traditional capitalism focused only on shareholders (shareholders), was defended by Milton Friedman half a century ago when he said that the sole purpose of any company is to make a profit for its shareholders. This approach led to imbalance, because it is necessary to consider the other stakeholders in producing lasting results.
Organizations need to recognize the interdependence of systems, because without customers, suppliers, employees, communities, the environment, shareholders and others, no company would exist. the fact that we recognize this interdependence and create channels of communication between various stakeholders Allows us to innovate more efficiently, grow in a more structured way, and create value across multiple dimensions and connections, creating win-win relationships.
In the introduction to his famous book “Conscious Capitalism: How to Unleash the Heroic Spirit of Business”, co-authored with Raj Sisodia, Whole Foods founder John McKay explains how stakeholders It unfolded after the Memorial Day tragedy of 1981, when a flood in Austin (Texas) nearly bankrupted the then-young, one-story company. According to her account, the day after the flood, dozens of customers and neighbors came to help clean up the store and save what they could; employees worked without receiving remuneration; Dozens of vendors stepped in to refill the store on credit; the bank provided loans for reconstruction; Investors made fresh capital contribution. All this because the brand has established a close relationship with all its stakeholders, care and commitment are involved. As a result, Whole Foods not only recovered, it flourished to the point where, in 2017, it was sold to Amazon for $13.7 billion.
Another example: on August 19, 2019 business roundtable – a consortium that brings together the largest corporations in the United States – issued a manifesto signed by 181 CEOs of large US companies, reaffirming the commitment of these companies. stakeholders and social welfare. According to the document, this corporate responsibility objective should be more important than profit. The signed document is called the Statement of Purpose of a Corporation and replaces all previous statements by the association, outlining a new modern standard of corporate responsibility. Amazon, Apple, Bayer, Coca-Cola, Dell, IBM and Microsoft are among the 181 companies that have signed the declaration.
On the other hand, the multiplicity of relationships established by organizations with their various audiences increases the risk and accountability of the leadership. The power to change companies and business models, in fact, lies with leaders, whether they are entrepreneurs, controlling shareholders, directors, investors or administrators. Tone comes from leadership and you practice what you say (walk the talk) is crucial.
In this context, directors and other governance agents should strive to consolidate a new approach to decision-making, considering an increasingly diverse and complex set of implications and expectations. stakeholders, Establishing and strengthening the ESG framework is only the first step. The most advanced stage is the development of an ethical culture, based on principles and values effectively observed on a daily basis.