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Stakeholder capitalism: Difference between revisions
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Even that trade union for unreconciled boomer gammons, the Business Roundtable joined in: last year, it “redefined the purpose of a corporation” away from ''the outright pursuit of profit'' towards ''promoting an economy that serves all Americans''. | Even that trade union for unreconciled boomer gammons, the Business Roundtable joined in: last year, it “redefined the purpose of a corporation” away from ''the outright pursuit of profit'' towards ''promoting an economy that serves all Americans''. | ||
“It affirms the essential role corporations can play in improving our society,” said Alex Gorsky,<ref>No relation to ''that'' [[Good luck, Mr. Gorsky|Mr. Gorsky]], as far as we know.</ref> Chairman and CEO of Johnson & Johnson and Chair of the Roundtable’s Corporate Governance Committee,<ref>Not trying to be funny or anything, but is being Chairman ''and'' CEO really the best example for a chair of a corporate governance committee to set?</ref> “when [[CEO|CEOs]] are truly committed to meeting the needs of all [[stakeholder]]s.” | {{Quote|“It affirms the essential role corporations can play in improving our society,” said Alex Gorsky,<ref>No relation to ''that'' [[Good luck, Mr. Gorsky|Mr. Gorsky]], as far as we know.</ref> Chairman and CEO of Johnson & Johnson and Chair of the Roundtable’s Corporate Governance Committee,<ref>Not trying to be funny or anything, but is being Chairman ''and'' CEO really the best example for a chair of a corporate governance committee to set?</ref> “when [[CEO|CEOs]] are truly committed to meeting the needs of all [[stakeholder]]s.”}} | ||
But stakeholder capitalism ''codifies'' the [[agency problem]]. It diffuses the executive’s accountability for anything the corporation does, putting the [[professional-managerial class]] beyond the reproach of the one constituent stakeholder group with the necessary means, justification and consensus to call it out: their [[Shareholder|shareholders]]. | But stakeholder capitalism ''codifies'' the [[agency problem]]. It diffuses the executive’s accountability for anything the corporation does, putting the [[professional-managerial class]] beyond the reproach of the one constituent stakeholder group with the necessary means, justification and consensus to call it out: their [[Shareholder|shareholders]]. | ||
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Maybe that’s what the Business Roundtable meant; maybe not. Maybe they’ve changed their minds. Here's current chair, Jamie Dimon, quoted in the FT: | Maybe that’s what the Business Roundtable meant; maybe not. Maybe they’ve changed their minds. Here's current chair, Jamie Dimon, quoted in the FT: | ||
{{Quote|“All we’re saying is when we wake up in the morning, what we give a shit about is serving customers, earning their respect, earning their repeat business.”<ref>[https://www.ft.com/content/14fcf2be-067d-49e3-ae6d-814dd6a35abf Stakeholder capitalism is ‘not woke’, says JPMorgan’s Jamie Dimon], ''Financial Times'', 2 June 2022</ref> | {{Quote|“All we’re saying is when we wake up in the morning, what we give a shit about is serving customers, earning their respect, earning their repeat business.”<ref>[https://www.ft.com/content/14fcf2be-067d-49e3-ae6d-814dd6a35abf Stakeholder capitalism is ‘not woke’, says JPMorgan’s Jamie Dimon], ''Financial Times'', 2 June 2022</ref>}} | ||
This is no reimagining of the fundamental purpose of a corporation, but just a better view of the old one. If your customers happen not to be, or care about, polar bears, then no need to lose any sleep about polar bears, or give shit about them when you wake up if you do. Your only decision is “whether me caring about polar bears will make more people buy my stuff, and thereby increase my bottom line”. This is untrammeled ''shareholder'' capitalism. | This is no reimagining of the fundamental purpose of a corporation, but just a better view of the old one. If your customers happen not to be, or care about, polar bears, then no need to lose any sleep about polar bears, or give shit about them when you wake up if you do. Your only decision is “whether me caring about polar bears will make more people buy my stuff, and thereby increase my bottom line”. This is untrammeled ''shareholder'' capitalism. | ||