Stakeholder Capitalism
Eclipses
Shareholder Primacy
2019 will be remembered as the year that the business community began the transformational shift toward a more balanced form of capitalism that serves all stakeholders, not just shareholders. In a time of rising and extreme inequality, climate change, and populism, it couldn’t be more critical that businesses measure their performance differently – assessing not just short-term financial performance but their impact on their workforces, communities, customers, and the environment.
We couldn’t be more proud to be at the center of the action. This year we fueled the stakeholder capitalism movement by providing the definitive roadmap for what corporations should prioritize, the data and rankings to help companies benchmark and improve performance, as well as the business and investment case to incentivize change.
2020 will be the year business and markets move from rhetoric to reality, from aspiration to action. “Show me” will be the operative phrase. We will play a significant role in bringing the promise of stakeholder capitalism into practice by becoming a leading authority for stakeholder measurement and improvement – which serve as the underpinning of trust for a future capitalism. Our unique data, tools, and insights will support catalytic change and help build an economy that works for all Americans.
Although corporate leaders have pledged to create value for all of their stakeholders, we believe one group in particular will be at the epicenter of this shift in 2020: workers. During this election cycle the state of jobs, wages, and workers in America will be at the core of the conversation. Despite rising productivity, profits, and a record stock market run, many Americans still feel disconnected and left behind. We think it’s one of the biggest reasons why a majority of Americans consistently tell us that the most important thing companies should prioritize is their workforce.
The good news is that we know now what steps need to be taken to move forward. This year, we will be stepping up our efforts to increase the breadth and depth of human capital disclosure, especially wages; elevate policies and practices that support good jobs, a clean environment, and healthy communities; identify strategies for companies to overcome barriers to implementation toward meaningful change; and engage investors and civil society on how to scale this behavior. The bottom line is we know that when businesses do right by all their stakeholders, everybody benefits.
This is a once-in-a-generation moment, and we invite you to join us.
The Year of the Worker
Martin Whittaker, CEO
