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Shareholder Capitalism is making way for Stakeholder Capitalism

As the  World Economic Forum is currently taking place in Davos, the word that seems to be the most frequently used is Stakeholder Capitalism.

The past year has seen significant developments that indicate a systemic shift towards purposeful business and responsible capitalism, challenging well-established assumptions about shareholder primacy.

Just into 2020 companies like Black Rock, and most recently today the CEO of Airbnb are competing to be the first to announce how they will address the serious environmental and social challenges facing humanity through incorporating not only shareholders but all stakeholders within their corporate governance.

Facing this new reality, boards need to consider what role their corporation will play in society and what steps they must take to ensure their corporation is prepared for the future.

Follow the link for an interesting read by the World Economic Forum.

Link to article.



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