Post by account_disabled on Feb 18, 2024 0:53:50 GMT -5
In a time of rapid change, resilient companies fare better, performing better financially and operationally during difficult periods, such as economic downturns, compared to their competitors. These companies are prepared to face difficult times, constantly seeking to improve their performance and skillfully making decisions to adapt and overcome challenges.
An additional element to further strengthen the Middle East Mobile Number List resilience of companies is to understand stakeholder capitalism , a business approach that considers not only shareholders, but also all interested parties or stakeholders , such as employees, customers, suppliers, communities. and the environment, in decision making and in the creation of long-term value.
What is stakeholder capitalism ?
Stakeholder capitalism refers to an economic system that believes in serving all stakeholders, rather than just shareholders, and questions the social responsibility of companies. Specialists who defend this economic model say that companies must consider everyone involved, not only the owners, but also employees, customers and suppliers, and that failure to do so means that they can damage the environment and increase inequality. .
To better understand the importance of this system and why it is important in adopting proactive leadership that drives a sustainable future, here we break down some keys to understanding it…
5 key facts to understand stakeholder capitalism
1. Data shows the value of Stakeholder Capitalism
Stakeholder Capitalism is a management theory that considers serving the interests of all stakeholders essential to the long-term success of a business. There is evidence of:
CEO Leadership 67% of executives surveyed report that having their CEO speak out on controversial topics has a positive impact on the company's reputation.
Employees: Concern about environmental impact and diversity and inclusion has increased among employees.
Consumers: 40% of global consumers look for products aligned with their values and 57% are willing to change their purchasing behavior to reduce negative environmental impact.
Investors: Companies with clear ESG objectives show strong economic performance.
Overall, evidence shows that adopting stakeholder capitalism can have positive impacts on company reputation, employee satisfaction, consumer preference, and investor performance, making it an important approach. for long-term success in today's business environment.
2. The best stakeholder capitalism efforts elevate corporate strategy and leadership
Leading companies are creating large-scale, enterprise-level strategies to achieve end-to-end sustainability and positively impact stakeholders. A notable early leader, Unilever, launched its Sustainable Living Plan more than a decade ago and reorganized the entire company around three purpose-driven business objectives.
To create clarity and visibility around these strategies, companies often create named platforms to clearly outline and communicate their strategy. Notable examples include the Mars Sustainable in a Generation Plan and the Nike Move to Zero platform . These strategic initiatives speak directly to shareholders to demonstrate a sustainable, forward-thinking business strategy that mitigates long-term risk and maximizes economic benefit. At the same time, the efforts resonate with employees, customers, partners and communities who have new expectations about the role of companies in society.
understand stakeholder capitalism
3. Diversity, equity and inclusion (DE&I) is a key component
Diversity, equity and inclusion (DE&I) are important aspects of stakeholder capitalism, both in terms of how companies establish internal DE&I policies and practices that support all employees and eliminate racial, gender and and other policies affecting hiring, promotions, salaries, and benefits.
As research shows, companies with a strong track record in DE&I, especially at the C-suite and Board levels, also achieve better business performance in profitability and innovation. The business case is clear. Now, leading companies are reevaluating their DE&I investments and better tying them to core business strategy.
An additional element to further strengthen the Middle East Mobile Number List resilience of companies is to understand stakeholder capitalism , a business approach that considers not only shareholders, but also all interested parties or stakeholders , such as employees, customers, suppliers, communities. and the environment, in decision making and in the creation of long-term value.
What is stakeholder capitalism ?
Stakeholder capitalism refers to an economic system that believes in serving all stakeholders, rather than just shareholders, and questions the social responsibility of companies. Specialists who defend this economic model say that companies must consider everyone involved, not only the owners, but also employees, customers and suppliers, and that failure to do so means that they can damage the environment and increase inequality. .
To better understand the importance of this system and why it is important in adopting proactive leadership that drives a sustainable future, here we break down some keys to understanding it…
5 key facts to understand stakeholder capitalism
1. Data shows the value of Stakeholder Capitalism
Stakeholder Capitalism is a management theory that considers serving the interests of all stakeholders essential to the long-term success of a business. There is evidence of:
CEO Leadership 67% of executives surveyed report that having their CEO speak out on controversial topics has a positive impact on the company's reputation.
Employees: Concern about environmental impact and diversity and inclusion has increased among employees.
Consumers: 40% of global consumers look for products aligned with their values and 57% are willing to change their purchasing behavior to reduce negative environmental impact.
Investors: Companies with clear ESG objectives show strong economic performance.
Overall, evidence shows that adopting stakeholder capitalism can have positive impacts on company reputation, employee satisfaction, consumer preference, and investor performance, making it an important approach. for long-term success in today's business environment.
2. The best stakeholder capitalism efforts elevate corporate strategy and leadership
Leading companies are creating large-scale, enterprise-level strategies to achieve end-to-end sustainability and positively impact stakeholders. A notable early leader, Unilever, launched its Sustainable Living Plan more than a decade ago and reorganized the entire company around three purpose-driven business objectives.
To create clarity and visibility around these strategies, companies often create named platforms to clearly outline and communicate their strategy. Notable examples include the Mars Sustainable in a Generation Plan and the Nike Move to Zero platform . These strategic initiatives speak directly to shareholders to demonstrate a sustainable, forward-thinking business strategy that mitigates long-term risk and maximizes economic benefit. At the same time, the efforts resonate with employees, customers, partners and communities who have new expectations about the role of companies in society.
understand stakeholder capitalism
3. Diversity, equity and inclusion (DE&I) is a key component
Diversity, equity and inclusion (DE&I) are important aspects of stakeholder capitalism, both in terms of how companies establish internal DE&I policies and practices that support all employees and eliminate racial, gender and and other policies affecting hiring, promotions, salaries, and benefits.
As research shows, companies with a strong track record in DE&I, especially at the C-suite and Board levels, also achieve better business performance in profitability and innovation. The business case is clear. Now, leading companies are reevaluating their DE&I investments and better tying them to core business strategy.