Opinion: Challenges of Convincing the Left About Stakeholder Capitalism
.png)
Those on the far right who oppose stakeholder capitalism base it mostly on a definition that means diverting resources from shareholders to address social causes or implementing a management system that seeks to balance the interests of all stakeholders. From the standpoint of the far left, definitions don’t matter because it’s the very nature of capitalism that’s the problem, not how stakeholder capitalism is defined.By Bruce Bolger
Why Social Democrats, Socialists Appear Unreceptive to Capitalism Reform
Opposition to Stakeholder Capitalism From the Left
Click here to subscribe to the ESM weekly e-newsletter.
The election of a Democratic Socialist Zohran Mandami to the capital of US capitalism highlights the growing unpopularity of capitalism as it’s currently practiced. Ironically, it might be more difficult to convince the extreme left of the merits of stakeholder capitalism than the right-wing.
ESM recently published an opinion piece on why conservatives should embrace stakeholder capitalism. It is not so easy to make this case when it comes to the left, because to many in this camp, capitalism itself is fundamentally flawed and can’t be reformed.
.jpg)
Since conservatives inherently believe in capitalism, the debate with them centers on what form it should take. Their argument centers largely on definition. More than one opponent on the left, including Lucien Bebchuk, Professor at the Harvard Business School, and Wayne Winegarden, , Senior Fellow and Director Center for Medical Economics and Innovation at Pacific Research Institute, told me they could approve of stakeholder capitalism if defined as enhancing returns for investors only by creating value for customers, employees, distribution and supply chain partners, communities and the environment. Both insisted that this was not the correct definition. The challenge with those on the far left is that, for them, the capitalist system has fundamental structural flaws and material motivations that no matter of reform can solve.
Why Social Democrats, Socialists Appear Unreceptive to Capitalism Reform
For those who believe in Social Democracy or Socialism, the debate hinges not on the stakeholder capitalism definition one chooses, but rather on the validity of capitalism itself. Those who oppose capitalism do not appear receptive to a capitalism reform movement. Read their views below.
Opposition to Stakeholder Capitalism From the Left
1. Oliver Eagleton
Affiliation: Associate Editor, New Left Review
Critique: He argues stakeholder capitalism is a “Third-Way” style ideology that softens class antagonism and rehabilitates capitalism under a moral veneer. In his view, it’s more about legitimacy than structural reform.
Source: Stakeholder Capitalism, Again – New Left Review
2. Nancy Fraser
Affiliation: Political theorist; New School for Social Research
Critique: In her framework of “progressive neoliberalism,” Fraser argues that ideas like stakeholder capitalism co-opt feminist, ecological, and social-justice rhetoric to stabilize capitalism instead of transforming it.
Source: Interview: Nancy Fraser on Progressive Neoliberalism – Dissent Magazine
3. Luc Boltanski and Eve Chiapello
Affiliation: Sociologists; authors of The New Spirit of Capitalism
Critique: They show how capitalism constantly absorbs its critics by incorporating moral and cultural demands—stakeholder rhetoric is part of this adaptation, giving capitalism a “social conscience” without changing exploitation.
Source: The New Spirit of Capitalism (Verso Books)
4. Jason Hickel
Affiliation: Anthropologist and author, advocate of the degrowth movement
Critique: Green or stakeholder capitalism cannot reconcile endless profit growth with ecological limits; instead, Hickel calls for a post-growth, post-capitalist global economy.
Source: “The Case for Degrowth” – Foreign Policy
5. Giorgos Kallis
Affiliation: Ecological economist, Autonomous University of Barcelona
Critique: Stakeholder capitalism and ESG (environmental, social, governance) reforms fail because they maintain capitalism’s growth imperative; real sustainability requires scaling down production and redistributing wealth.
Source: “In Defence of Degrowth” – Ecological Economics
6. Brett Christophers
Affiliation: Political economist, Uppsala University
Critique: The logic of profit-driven investment prevents stakeholder or market-led solutions from addressing crises like climate change; public ownership is necessary.
Source: The Price Is Wrong (Verso Books)
7. Michael Löwy
Affiliation: Marxist sociologist; co-author of An Ecosocialist Manifesto
Critique: Argues stakeholder capitalism cannot address capitalism’s inherent ecological destructiveness; calls for eco-socialism to replace profit motives with social and ecological planning.
Source: An Ecosocialist Manifesto (with Joel Kovel)
8. Grace Blakeley
Affiliation: Economist and writer at Tribune Magazine and The Guardian
Critique: Stakeholder capitalism serves as a legitimation tool for the alliance between finance, the state, and big corporations—what she calls “vulture capitalism.”
Source: Vulture Capitalism: Corporate Crimes, Backdoor Bailouts, and the Death of Freedom
9. Slavoj Žižek
Affiliation: Philosopher and cultural critic
Critique: Corporate “woke” and stakeholder language addresses moral symptoms (diversity, sustainability) but leaves intact the structural violence and inequality inherent in capitalism.
Source: “We Can’t Change the World Without Changing Capitalism” – The Guardian
10. David Harvey
Affiliation: Marxist geographer, CUNY Graduate Center
Critique: CSR (corporate social responsibility) and stakeholder reforms are superficial; they don’t touch the underlying accumulation and exploitation mechanisms that drive crisis, inequality, and environmental damage.
Source: A Brief History of Neoliberalism (Oxford University Press)
11. Anand Giridharadas
Affiliation: Journalist, author of Winners Take All
Critique: He calls stakeholder capitalism “elite self-preservation” — it lets billionaires and corporations appear benevolent while protecting their power and avoiding structural reform.
Source: Winners Take All: The Elite Charade of Changing the World
12. Tariq Fancy
Affiliation: Former CIO for Sustainable Investing at BlackRock
Critique: ESG and stakeholder capitalism are a “dangerous placebo” delaying real systemic reform and state regulation.
Source: “The Secret Diary of a ‘Sustainable Investor’” (Medium)
13. Joel Kovel
Affiliation: Eco-socialist thinker, co-author of An Ecosocialist Manifesto
Critique: Reforming capitalism (e.g., through stakeholder logic) cannot stop its destructive growth imperative. He calls for ecosocialist reorganization of production.
Source: The Enemy of Nature (Zed Books)
14. Kent Greenfield
Affiliation: Professor of Law, Boston College
Critique: Though a moderate reformer, Greenfield argues US corporate law structurally enforces shareholder primacy; real stakeholder accountability would require rewriting corporate law itself.
Source: The Failure of Corporate Law (University of Chicago Press)
15. Peter S. Goodman
Affiliation: Economics reporter, the New York Times
Critic: It is little more than greenwashing and virtue signaling to distract the masses from the exploitation by multi-nationals.
Source: Davos Man
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.
