Stakeholder Capitalism in the News and Research
A Transatlantic Rebellion Against Woke Capital
The Evolution of Ethical Leadership in Business to Competitive Necessity
Deconstructing the Dichotomy: Rethinking the 'Capital' in Woke Capitalism
ESG Mid-Year Update: Who Still Cares, and Why You Should
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The Washington Examiner reports on what it calls a transatlantic rebellion against woke capital...Research study sees ethical leadership moving into the mainstream...Study urges balanced approach to purpose and profits...ESG update: who still cares and why you should.A Transatlantic Rebellion Against Woke Capital
This article in the Washington Examiner by Daniel Cameron discusses the backlash against stakeholder capitalism, which he argues often requires consumers to adopt political ideologies to conduct business. In addition to the Trump administration’s stances against DEI (diversity, equity and inclusion), he highlights the efforts by the 1792 Exchange and France’s Observatoire du Wokisme in France to increase transparency by pooling data on Fortune 500 and CAC 40 companies. The collaboration aims to provide international transparency into how multinational corporations use shareholder investments to reshape public norms without a democratic mandate. Note: it remains unclear how right-wing opponents such as Cameron conflated a 70-year-old business management movement with corporations’ making donations to social clauses.
The Evolution of Ethical Leadership in Business to Competitive Necessity
This study in the Journal of Business Management Studies finds that ethical leadership has transitioned from a niche concept to a mainstream expectation. The authors find a correlation between ecological stewardship and profitability, the importance of fair labor practices for employee loyalty and long-term profitability, and the role of transparency and fair compensation in enhancing financial performance. The rise of ESG frameworks and stakeholder capitalism further validates these findings, they write, showing that ethical leadership is now a competitive necessity. Authors are Aman Aherm, Robert J. Trulaske, Sr. College of Business, Columbia, MO; Sharv Jadhav, Mumbai Educational Trust, MET League of Colleges, Maharashtra, India; Shreyas Walekar, Mudra Institute of Communications (MICA), Ahmedabad, India; and Akshit Kashyap, Xavier School of Management (XLRI), Jamshedpur, Jharkhand, India.
Deconstructing the Dichotomy: Rethinking the 'Capital' in Woke Capitalism
This study published by the University of Auckland Faculty of Law, explores the perceived conflict between 'woke agendas' and capitalism by examining two approaches to corporate profitability: as the end objective of a director’s duty or as a starting point for broader corporate responsibility. The authors argue for a circular and sustained approach to profitability that balances what they call wokeness and capitalism within directors’ fiduciary obligations. This approach aligns with the entity theory of the corporation, compelling both shareholder and stakeholder advocates to converge in pursuit of a model of woke capitalism. Authors are Peter Underwood and Philip Gavin of the University Auckland, New Zealand.ESG Mid-Year Update: Who Still Cares, and Why You Should
This article in the Harvard Law School Forum for Corporate Governance by Miriam Wrobel and Alanna Fishman, Senior Managing Directors at FTI Consulting, emphasizes that stakeholders who determine a company’s market value, operational license, and competitive position continue to drive ESG (environmental, governance and governance) performance. The authors highlight three strategic implications for businesses: focusing on materiality, communicating with precision, and embedding ESG considerations into core business processes. They argue that integrating ESG into decision-making and operations builds resilience against political and market volatility, creating sustainable competitive advantages.
Enterprise Engagement Alliance Services
Celebrating our 15th year, the Enterprise Engagement Alliance helps organizations enhance performance through:1. Information and marketing opportunities on stakeholder management and total rewards:
- ESM Weekly on stakeholder management since 2009. Click here to subscribe; click here for media kit.
- RRN Weekly on total rewards since 1996. Click here to subscribe; click here for media kit.
- EEA YouTube channel on enterprise engagement, human capital, and total rewards since 2020
Management Academy to enhance future equity value for your organization.3. Books on implementation: Enterprise Engagement for CEOs and Enterprise Engagement: The Roadmap.
4. Advisory services and research: Strategic guidance, learning and certification on stakeholder management, measurement, metrics, and corporate sustainability reporting.
5. Permission-based targeted business development to identify and build relationships with the people most likely to buy.
Contact: Bruce Bolger at TheICEE.org; 914-591-7600, ext. 230.
