Wall Street Week on Stakeholder Capitalism: It's Just Better Business

A segment by journalist David Westin on stakeholder capitalism highlights what the Enterprise Engagement Alliance has asserted for years: it’s just better business.

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Stakeholder capitalism is nothing new but rather a sensible approach to harmonizing the interests of shareholders, customers, employees, distribution and supply chain partner, and communities to support a common purpose, goals, objectives, and values. That's the basic conclusion of this segment on stakeholder capitalism that is the among first one will find that focuses on the fact that it's simply better business and nothing new.

Click here to skip ahead to the segment that focuses specifically on stakeholder capitalism. Westin defines stakeholder capitalism as the idea that companies should serve the interests of all stakeholders. The show features insights from:

John Iwata, former IBM executive and now an Executive Fellow at the Yale School of Management’s Program on Stakeholder Management and Innovation, who emphasizes the need for a holistic approach to management that aligns interests and balances short- and long-term goals;
Satya Nadella, CEO of Microsoft, who highlights the multi-constituent nature of enterprises and the need to manage relationships with all stakeholders;
Victoria Mars, Mars Board member and great-granddaughter of Mars founder Franklin Marks, who emphasizes the importance of principles and values in guiding the company's decisions, and Francesco Starace, former CEO of energy company Enel, who emphasizes the importance of returning to basic principles for long-term success.

The gist of the program is that CEOs always face challenges balancing short-term principles with long-term commitments that may not pay off immediately as well as considering the non-financial commitments to employees and society. Companies like Mars and Enel emphasize the importance of having a clear purpose and values built into their operating systems and cultures. These principles guide their strategic decisions about unavoidable trade-offs that help them maintain long-term success even through difficult times.

Those interviewed observe that managing relationships with all stakeholders holistically rather than on a piecemeal basis is essential for long-term success.

Enterprise Engagement Alliance Services

Celebrating our 15^th 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

2. Learning: Purpose Leadership and Stakeholder

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.