The False Promise of “New Capitalism”
The late, great Dr. Kurt Richebacher saw “great fallacy and folly in America’s shareholder-value model.” That is, he thought executives spent too much time trying to boost their share prices in the short-term instead of investing in growth for the future. So far, the idea behind stakeholder capitalism is off to a good start, then. The next few stakeholders mentioned are pretty common sense. If a business isn’t benefiting customers, they buy somewhere else. Failure to provide value to employees leads them to find new jobs. And if suppliers aren’t happy with their contracts, they look for new clients. Frankly, then, any executive who isn’t thinking of these things doesn’t deserve to be in charge.