Business Standard

Is stakeholder capitalism back?

There are reasons to believe that corporate leaders renouncing shareholder primacy are being a little disingenuous

illustration: Binay sinha
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illustration: Binay Sinha

Joseph E Stiglitz
For four decades, the prevailing doctrine in the US has been that corporations should maximise shareholder value — meaning profits and share prices — here and now, come what may, regardless of the consequences to workers, customers, suppliers, and communities. So the statement endorsing stakeholder capitalism, signed earlier this month by virtually all the members of the US Business Roundtable, has caused quite a stir. After all, these are the CEOs of America’s most powerful corporations, telling Americans and the world that business is about more than the bottom line. That is quite an about-face. Or is it? 

The free-market ideologue
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper
Topics : capitalism

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First Published: Aug 28 2019 | 11:42 PM IST

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