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EEA Solicits Reader Input on Proposed #StakeholderCapitalism Definition...

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; 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 Or, call 914-591-7600, ext. 230. Input is requested by Nov. 9, 2020. 

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