How to get your Stakeholder Capitalism Right
Stakeholder capitalism argues that companies should benefit more than just their shareholders and customers and also consider the community, society, and environment. In this blogpost we define what is stakeholder capitalism, and share 6 steps to get it right.
Stakeholder capitalism is a business model or economic system that supports the interests of all stakeholders. Companies can be structured to provide long-term value that benefits all stakeholders rather than focusing on short-term earnings or dividends for shareholders.
Here is a little description of the differences between shareholders and stakeholders.
Why is stakeholder capitalism gaining momentum right now?
Today, there are several reasons why stakeholder capitalism is becoming more prominent. But these two reasons are the main ones:
More individuals feel that businesses should be held accountable for their activities
More individuals feel that businesses should be held accountable for their activities and possible repercussions on future generations, particularly in terms of environmental sustainability.
Companies that make the incorrect decision risk facing criticism, problems attracting new personnel, and backlash from employees, customers, and the broader public.
As a result, profit is becoming more tied to a company’s social and environmental impact.
The economic environment is more global than ever
Second, the economic landscape is more global than ever before. People are becoming more conscious that the acts of each individual and organisation have the capacity to have an influence on the earth and the larger community. As a result, a company’s prospective stakeholders might be almost anyone.
In light of this, the stakeholder capitalism model may be unavoidable – a natural step from shareholder capitalism and perhaps state capitalism.
If you’re ready to implement a stakeholder capitalism strategy in your organization, use these guidelines to maximise the potential advantages — and overcome some of the problems that may arise:
In Darzin Software – our sister website- we’ve taken a deeper look at Why Stakeholder Capitalism Matters and How to Get It Right.
To effectively manage your stakeholders (and remain on top of your tracking, communications, and other tasks), you need the correct technology for the job.
Simply Stakeholders is a stakeholder relationship management tool that’s designed to help organizations track, analyze, manage, and communicate with their stakeholder groups. Popular features include:
- Stakeholder analysis & mapping (based on influence, interest, and impact)
- Sentiment tracking
- Email integration
- Task management & collaborative tools
- Reporting & analytics
Looking to learn more about stakeholder management? Contact us