LAZ Parking Illustrates Both the Promise and Risk of Stakeholder Capitalism
Stakeholder Capitalism Without the Label
A Potentially Powerful Recruiting Story
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LAZ Parking, founded in Hartford in 1981, is embarking on another major expansion, with plans to create more than 1,000 jobs and career opportunities across North America during the coming year and add more than 100 positions at its Hartford headquarters. The story is noteworthy not simply because of the company's growth, but because LAZ has explicitly built its business philosophy around employees, clients and customers. It provides an interesting example of both the potential—and the risks—of stakeholder capitalism.Stakeholder Capitalism Without the Label
The premise of stakeholder capitalism is that an organization creates sustainable value by addressing the interests of all the stakeholders upon whom its success depends rather than focusing solely on shareholders or owners.
LAZ's stated mission comes remarkably close: "Create opportunities for our employees and value for our clients." It's values include commitment to people, respect, honesty and integrity, and trust. The company says its approach to clients is to build long-term relationships by protecting their interests.
That philosophy apparently has accompanied considerable growth. LAZ says it now manages 2.1 million parking spaces at 5,700 locations in 639 cities across 44 states and eight Canadian provinces. Its newly announced "LAZ 3.0" strategy includes expansion into mobility hubs, EV charging, autonomous vehicle support, technology and artificial intelligence.
It would be impossible from publicly available information to conclude that stakeholder management caused this growth. LAZ does provide an intriguing example of how the two can potentially reinforce one another.
A Potentially Powerful Recruiting Story
LAZ says most of its senior management began on the front lines, parking cars and working in parking facilities, and that it promotes from within wherever possible. For a company planning to create more than 1,000 new opportunities, that is a potentially powerful recruiting message.
On the other hand, building a brand in a world of increasing transparency puts more pressure on organizations to perform. LAZ currently receives 3.6 out of five stars on Glassdoor based on more than 1,000 employee reviews, roughly in line with the transportation and logistics industry average reported by Glassdoor. Sixty percent would recommend the CEO. ESM could not find any reliable national ratings on the company's level of customer satisfaction.
LAZ itself reports that 6,111 employees participated in its 2024 Associate Engagement Survey, with 79% saying they were proud to be LAZ employees and believed in “The LAZ Way.” The company also reported 86% retention and a 37% increase in promotions. These are company-reported figures rather than independently verified measures, but point to how companies can benefit from sharing these claims if verified.
Enterprise Engagement Alliance Services
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Contact: Bruce Bolger at TheICEE.org; 914-591-7600, ext. 230.
