The two main problems with Schwab’s conception of “stakeholder capitalism” is its placement of companies as “trustees of society” and “the best response” to today’s multi-faceted challenges. Of course, stakeholder capitalism supporters would say, “Well, she should be! Ultimately, one of the key responsibilities of any government, particularly democratically elected ones, is to deliver social justice for their citizens. Attempting to substitute generosity for a perceived inability to deliver social justice only undermines that social justice in the long term. Generosity is not justice; only justice is justice.

Source: The Edge Markets February 06, 2020 03:33 UTC