Stakeholder Capitalism: Intention is the First Step toward Accountability


credit: closerdaybyday

This article written by CASE Faculty Director Cathy Clark, tackles what do America's CEOs want to change about corporate governance.

Clark shares what the Business Roundtable, a lobbying group composed of the nation's leading CEOs, have released in a new Statement on the Purpose of a Corporation signed by 181 CEOs.

Clark highlights the key ideas in the release including: 1) The purpose of a corporation in the US is to promote an economy that serves all Americans; 2) US CEOs should move away from the notion that the sole purpose of business is to maximize profits for shareholders; and 3) Businesses share a fundamental commitment to serve all of their stakeholders.

There has been a big reaction to the release and Clark has observed interpretations on two opposite poles: The Air Traffic Control group and The Show Us the Money group. Clark also shares a brief guide to some actions being proposed.

If the companies do take the actions to make their intentions real, Clark says that, truthfully, "we won't know unless they start measuring and reporting on the impact they are having on other stakeholders." Read the Entire Article


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Ganesh Natarajan is the Founder and Chairman of 5FWorld, a new platform for funding and developing start-ups, social enterprises and the skills eco-system in India. In the past two decades, he has built two of India’s high-growth software services companies – Aptech and Zensar – almost from scratch to global success.