Stakeholder Capitalism: Not as Radical a Concept as we may Think
21 June 2021
Companies exist to make money for their shareholders. Or, do they?
On this episode we spoke with Bob Eccles about the concept of “stakeholder capitalism,” the idea that companies will be most successful if they think beyond short-term returns and consider how they touch the lives of people around them, particularly those who are most vulnerable.
We talked about how shareholder primacy is not as engrained in corporate history as we tend to believe; about why, more and more, investors are pushing companies to take a long-term view; and I asked him what the board of the future needs to look like, if we want stakeholder capitalism to succeed.
ABOUT THIS EPISODE’S GUEST
Robert G. Eccles is a leading authority on corporate purpose and the integration of environmental, social, and governance (ESG) factors in resource allocation decisions by companies and investors. He is a Visiting Professor of Management Practice at the SAID BUSINESS SCHOOL, UNIVERSITY OF OXFORD and an Eminent Academic Advisor to BCG on Global ESG Integration and Reporting. He is also an advisor to the non-profit Impact Management Project and Corporate Accountability Project.