A debate has erupted at the highest level of business and politics about a subject with no formal definition in any dictionary. The Enterprise Engagement Alliance is undertaking an effort to establish a formal definition for submission to leading dictionaries and your input is requested.
“To have a meaningful discussion on Stakeholder Capitalism, we need a clear definition,” says Alex Edmans, Professor of Finance at London Business School and author of Grow the Pie: How Great Companies Deliver Both Purpose and Profit
. “It’s not just semantics. One definition divisively pits stakeholders against shareholders; the other constructively seeks to create long-term value for both.”
The following definition was formulated by the EEA with the help of Edmans and with input from Martin Whittaker
at JUST Capital
, the only independent nonprofit organization that tracks, analyzes, and engages with large corporations and their investors on how they perform on the public's priorities:
“Stakeholder Capitalism seeks to create shareholder returns only by creating value for society – customers, employees, suppliers, communities, and the environment.”
To comment on the proposed definition, please email Bruce Bolger at Bolger@TheICEE.org
; call 914-591-7600, ext. 230; or post your comment on LinkedIn
by Monday, Nov. 9.
Explains Martin Whittaker, Founding CEO of JUST Capital, “The term Stakeholder Capitalism was referred to repeatedly in the JUST Capital’s recent video show with Forbes announcing our JUST CAPITAL 100, featuring Satya Nadella, CEO of Microsoft; Dan Schulman, CEO of PayPal, Steven Bertoni, VP, Senior Editor, Forbes; Ann Cairns, Executive Vice Chair, Mastercard; Kenneth Chenault, former Amex chair, and Kenneth Frazier, Merck CE0. Yet, none of the official dictionaries provide a definition.” Click here
to hear excerpts from the video show.
Highlighting the consequences of having no formal definition, Bruce Bolger, EEA founder, says, “The World Economic Forum recently published a white paper on “Stakeholder Capitalism Metrics” without a clear definition of the term. We have seen recent debates in academia and in leading business media and have heard Stakeholder Capitalism referred to during the presidential campaign, with all the debate based on how the concept is defined. Those who are opposed use a definition that suggests it means taking from shareholders to satisfy other stakeholders or that it causes CEOs to balance various stakeholder interests more than is already required to run an organization. In fact, Stakeholder Capitalism has organically arisen from management at the front lines looking for a more sustainable way than the current shareholder focus to optimize profitability by aligning the interests of all stakeholders around a common purpose.”
Comments can be posted on LinkedIn
or emailed to Bruce Bolger at Bolger@TheICEE.org
. Or, call 914-591-7600, ext. 230. Input is requested by Nov. 9, 2020.
Master the Principles of Stakeholder Capitalism And Implementation Through Enterprise Engagement
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Stakeholder Capitalism Available Nowhere Else
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Enterprise Engagement Alliance Education: Certified Engagement Practitioner; Advanced Engaged Practitioner, and Certified Engagement Solution Provider learning and certification programs on how to implement Stakeholder Capitalism principles at the tactical level.
Join the EEA to begin your certification process or see our other resources below.
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Enterprise Engagement: The Roadmap 5th Edition
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OTHER RESOURCES TO ACTUALIZE STAKEHOLDER CAPITALISM
Communities: The Enterprise Engagement Alliance and Advocate and the Brand Media Coalition free resource centers offering access to the latest research, news, and case studies; discounts, promotions, referrals, and commissions, when appropriate to third-party solution providers from participating coalition solution provider members.
Enterprise Engagement Resources: EEXAdvisors.com provides the only curated online marketplace to access hundreds of solution providers in all areas of human capital management and enterprise engagement throughout the world.
10-minute short course: click here for a 10-minute introduction to Enterprise Engagement and ISO standards from the Coggno.com learning platform.
• The Engagement Agency at EngagementAgency.net, offering: complete support services for employers, solution providers, and technology firms seeking to profit from formal engagement practices for themselves or their clients, including Brand and Capability audits for solution providers to make sure their products and services are up to date.
• C-Suite Advisory Service—Education of boards, investors, and C-suite executives on the economics, framework, and implementation processes of Enterprise Engagement.
• Speakers Bureau—Select the right speaker on any aspect of engagement for your next event.
• Mergers and Acquisitions. The Engagement Agency’s Mergers and Acquisition group is aware of multiple companies seeking to purchase firms in the engagement field. Contact Michael Mazer in confidence if your company is potentially for sale at 303-320-3777.
Enterprise Engagement Benchmark Tools: The Enterprise Engagement Alliance offers three tools to help organizations profit from Engagement. Click here to access the tools.
• ROI of Engagement Calculator. Use this tool to determine the potential return-on-investment of an engagement strategy.
• EE Benchmark Indicator. Confidentially benchmark your organization’s Enterprise Engagement practices against organizations and best practices.
• Compare Your Company’s Level of Engagement. Quickly compare your organization’s level of engagement to those of others based on the same criteria as the EEA’s Engaged Company Stock Index.
• Gauge Your Personal Level of Engagement. This survey, donated by Horsepower, enables individuals to gauge their own personal levels of engagement.
For more information, contact Bruce Bolger at Bolger@TheEEA.org, 914-591-7600, ext. 230.