Stakeholder Capitalism in the News
National Review Continues Stakeholder Capitalism Confusion
The Case for Long-Term Stakeholder Thinking
Proof of Concept: NatWest’s Stakeholder Capitalism
University of North Carolina Adds Professor on Stakeholder Capitalism
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Objecting to stakeholder capitalism as a form of “statism,” a National Review columnist conflates stakeholder capitalism with the Trump administration’s involvement in business...An attorney makes the case for board-level long-term stakeholder thinking...NatWest policies seen as proof of stakeholder capitalism effectiveness...Professor selected to teach stakeholder capitalism principles at University of North Carolina journalism school
National Review Continues Stakeholder Capitalism Confusion
Andrew Stuttaford’s recent National Review article demonstrates how opponents continue to promote unsubstantiated definitions of stakeholder capitalism. He frames the Intel–US government deal as a cautionary tale about blurring the line between shareholder primacy and broader political or strategic objectives, arguing that stakeholder capitalism and ESG (environmental, social, governance) have muddled corporate purpose, undermining the clarity that shareholder primacy once provided.
The problem is that there is little evidence in the literature that stakeholder capitalism has anything to do with government ownership of enterprises.eIts focus is on enhancing returns for investors only by creating value for customers, employees, distribution and supply chain partners, and the environment, based on a definition published in Forbes in August 2020, co-authored by the Enterprise Engagement Alliance. Stakeholder capitalism focuses on how businesses through their effective management can create a virtuous circle for shareholders, stakeholders, and society, with little need for government involvement.
Stuttaford believes the government’s 9.9% equity stake in Intel introduces a quasi-public ownership model without a sunset clause. To him, this raises concerns about corporate independence and the risk of politicizing business decisions. While understanding the deal is partly defensible on national security grounds — ensuring domestic chip manufacturing and mitigating risks of overreliance on China — he warns that permanent government ownership risks setting a precedent for industrial policy that could stifle competition and innovation.
This may all be true but has nothing to do with stakeholder capitalism. The author is once again conflating stakeholder capitalism with issues such as government involvement in business that has little to do with it.
The Case for Long-Term Stakeholder Thinking
Vinson & Elkins’ insight piece, Playing the Long Game, argues that boards cannot ignore stakeholders despite the current retreat from ESG rhetoric. The author is Jon Solorzano, Partner at the Denver-based law firm.
Solorzano admits that recent regulatory and political pushback has prompted companies to scale back sustainability efforts, but demographic and global trends suggest that stakeholder expectations will only grow, he believes.
He contends that Millennials and Gen Z — soon to dominate the workforce and consumer base — expect companies to address environmental and social issues. Companies that ignore these pressures risk future underperformance, he believes. Directors should map stakeholder expectations over time, engage regularly with stakeholders, and balance legal compliance with evolving social and market expectations. He believes this approach positions companies to adapt more nimbly without abandoning shareholder value.
Proof of Concept: NatWest’s Stakeholder Capitalism .png)
The Female First feature on Dame Alison Rose’s tenure at UK-based NatWest Group provides strong empirical support for stakeholder capitalism as a viable business strategy, according to this article in a British publication.
According to the article, Rose redefined corporate success at NatWest as serving customers, communities, colleagues, and shareholders together — not sequentially. Her climate strategy (net-zero operations, £100B green financing target) and entrepreneurship initiatives (e.g., the Rose Review, £2B fund for female entrepreneurs) demonstrated that social responsibility could create new revenue streams and expand market share.
Employee and customer engagement programs boosted staff satisfaction and translated into improved customer experience, leading to market share gains across demographics, the article states.
Under her leadership, return on tangible equity nearly tripled to 19%, shareholder distributions hit £10B, and government ownership dropped below 50%, “proving that stakeholder capitalism can enhance — not dilute — shareholder value.”
University of North Carolina Adds Professor on Stakeholder Capitalism .png)
Torod Neptune joins the University of North Carolina Hussman School of Journalism and Media as an Assistant Professor after more than 25 years of executive experience advising Fortune 500 companies, CEOs and corporate boards on stakeholder value creation, reputation management, and organizational transformation.
Neptune most recently served as Senior Vice President and Chief Communications Officer at Medtronic, where he led global corporate marketing, communications, brand strategy and corporate responsibility. He has also held senior leadership roles at Lenovo, Verizon and Bank of America, and has served as a strategic adviser to global brands including Nike, GSK, Mastercard and Delta Airlines while working at global integrated agencies including Weber Shandwick, WE Communications and Hager Sharp.
According to the announcement, his professional focus includes the evolution of the chief communications officer role; the integration of data and analytics in communications strategy; and the role of business in advancing stakeholder capitalism.
The school says that Neptune’s professional background highlights the growing recognition of stakeholder capitalism at the leadership level. His career focus on reputation management and corporate responsibility underscores that major corporations are embedding stakeholder value into communications strategy and organizational transformation, the announcement indicates.
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.
