Latest news with #stakeholdercapitalism
Forbes
17-07-2025
- Business
- Forbes
Midnight Approaches: Living The Character Our Values Demand
It's time to strengthen character to realize values as the Doomsday Clock approaches midnight Canadian Prime Minister Mark Carney makes the case in his 2021 book 'Value(s): Building a Better World for All' that although markets have been constructed around economic value, they need to serve societal values. The opposite has been happening. In the book's introduction, Carney states, 'In short, we have moved from a market economy to a market society.' Market values have become society's values. Current market mechanisms embed a set of transactional and self-interested values that do not reflect the values societies want or need. Carney is not alone in calling for a systemic change from shareholder primacy to stakeholder capitalism, which goes beyond valuing profits to valuing not only current and future generations, but also communities and the planet. Alarm bells have been ringing for decades about the urgency of examining values and actions, most clearly illustrated by the Doomsday Clock, a symbolic timepiece created in 1947 by the Bulletin of the Atomic Scientists to measure humanity's proximity to global catastrophe. As Forbes Senior Contributor Monica Sanders describes, the Doomsday Clock, with its ominous countdown to midnight, serves as a stark reminder of the urgent need to address a range of threats, including climate change, nuclear proliferation, biothreats, disinformation, and wars. Essentially, Carney's call for society to embrace eternal and universal values, such as fairness, responsibility, and humility, is deemed to be at the root of how we engage with the world through decisions and actions that shape it. Every action we take moves us closer or further away from midnight. The end of the Cold War in 1991 marked a significant turning point in global stability. It followed a deeply tense period in 1953, when the testing of hydrogen bombs pushed the Doomsday Clock to just two minutes before midnight. In contrast, 1991 saw a dramatic retreat from that danger, with the Clock set back to 17 minutes before midnight—the furthest it's ever been. Since then, however, the threat has steadily intensified, and as of January 2025, the Clock stands at a mere 89 seconds until midnight. A clarion call to adopt a different set of values has been issued, but it is not being heeded. It's time to look beyond values to character. There are four reasons why we need to live up to the character that aspirational values demand. 1. Systems Trump Values Many of the systems within which we operate are misaligned, if not broken. James Clear's insight about goals and systems also applies to values and systems: 'We do not rise to the level of our goals. Instead, we fall to the level of our systems.' It is increasingly clear that a society relying on systems rooted in market values is unsustainable. These systems promote short-term, money- and power-focused thinking, ignoring non-monetary values, which dehumanizes us and fosters a 'might is more powerful than right' mindset. Such systems shape values. Whether among individuals, organizations, or society as a whole, evidence shows that systems influence not only values but also behaviors. The well-known Milgram and Stanford Prison experiments serve as striking reminders of how good people can be influenced by flawed systems, leading to compromised decisions and actions. Good intentions are not enough. Icek Ajzen's 1991 Theory of Planned Behavior (TPB) aimed to explain the gap between intentions and actual behaviors that lead to poor and unintended outcomes. He identified three key factors that influence the intention-behavior gap: 1) belief that the action will produce positive results; 2) whether the action aligns with norms; and 3) whether we believe we can do it. Although TPB has been applied to various behaviors, including health, environmental, consumer, and organizational habits, the insights remain consistent for personal values. Simply put, the systems within which we operate do not reinforce (or worse, undermine) our intended values; the norms embedded in the system prevail and erode both our belief and confidence in whether those values can be achieved. Systems can be seen as the norms and practices, whether in our lives, organizations, or society. Essentially, these systems embed approaches that are often difficult to alter or change. For example, at the individual level, people often prioritize attaining wealth and status—two core values in a market economy—causing them to neglect exercising or investing in close relationships, despite claiming to value health, family, and friends. Their ability to choose their lifestyle is influenced by market economy values rather than the more sustainable values of health and well-being. The same applies to how we behave within organizations, where individuals tend to respond to organizational norms reinforced through compensation and reward systems. Even though almost every organization has a statement of values, former Forbes Councils Member, Tom Silva, argued that 'Most Corporate Values Aren't Valuable,' mainly because they are mere platitudes. Silva was correct that words like fairness and integrity, which arise from a virtue ethics perspective, will not yield the intended benefits, given how they have been employed. However, his conclusion that organizations are better served by a deontological approach that looks at the intentions of the company is shortsighted. In referring to focusing on the duties of the organizations, he states: 'These are much more compelling because they employ not character traits but the intent and whether a company is fulfilling its duty to the world.' With this conclusion, he misses the power of a market value society that shapes values and what it takes to develop the strength of character to overcome these market values. 2. Character Underpins Values What was missing from Silva's argument is that developing character offers a cornerstone not only to support values, but to counter the forces that Ajzen identified in explaining why intentions are not realized. The reason that values such as integrity and fairness become platitudes is that there is a lack of understanding of the architecture of character that underpins their manifestation. In the same way that values can become platitudes, so too can character. My Forbes article, 'From Good to Great: 10 Ways to Elevate Your Character Quotient,' describes the foundations of character and provides a pulse check that individuals can use to assess their own and their organization's character development practices. The core ideas are that there is an architecture of character that can be understood as 11 interconnected character dimensions (transcendence, drive, collaboration, humanity, humility, integrity, temperance, justice, accountability, courage, and judgment), each with a set of virtuous behaviors that can be observed, assessed, and developed. An overlooked aspect of character is that any one of the behaviors can manifest in deficient or excess vice states. For example, the five behaviors associated with the character dimension of integrity—being authentic, candid, consistent, principled, and transparent—will manifest in the excess state as being uncompromising, belligerent, rigid, dogmatic, and indiscriminate. It is not that a person would want to reduce those strengths, but rather that they need strength in other dimensions, such as humility, humanity, and justice, to help ensure integrity manifests in the virtuous, not vice state. The deficient vice of integrity is being fake, untruthful, inconsistent, unprincipled, and manipulative. Weaknesses in these elements of integrity can be strengthened through regular practice – what we refer to as 'going to the character gym.' A key aspect of character is that it fosters human flourishing – sustained excellence and well-being, through judgment, or what Aristotle described as 'practical wisdom.' Unfortunately, people tend to overestimate their strength of character because they judge themselves by their intentions, while others judge them by their observable actions. Additionally, Tasha Eurich's research shows that 95% of us believe we are self-aware, but only 10% to 15% actually are. Therefore, when it comes to character, people are often unaware of their deficiencies and excesses. In our workshops, we encourage people to identify whether they lean toward character deficiency or excess. Even if someone does not see themselves as dogmatic (the excess vice of being principled), knowing their tendency toward excess can help them understand how others might perceive their principled behavior as dogmatic. The solution is not to become less principled but to strengthen the supporting character muscles. For example, developing behaviors such as being open-minded and flexible (elements of collaboration), and being curious and a continuous learner (part of humility), helps ensure that others see principled behavior manifesting as intended in the virtuous state. 3. Beyond Platitudes to Strengthening Character Living true to one's aspirational values is like telling someone to run a marathon without training. While character underpins how values are expressed, descriptions of character will remain empty words if people don't understand what it is, how it can manifest in deficiency and excess, and how to develop it. Similarly, there is no shortcut to physical exercise; there's no shortcut to developing character, just like going to the character gym. In 'Developing Leadership Character,' Gerard Seijts, Jeffrey Gandz, and I describe the 11 dimensions of character. In 'The Character Compass,' Gerard Seijts, Bill Furlong, and I outline how to grow and embed character within organizations. In 'Cracking the Code: Leader Character Development For Competitive Advantage,' Corey Crossan, Bill Furlong, and I chart a path for individuals and organizations. Over the past 17 years, as I have worked to elevate character alongside competence in higher education and organizations, I have observed that people quickly realize they have blind spots regarding character, and consider it a revelation that what they thought was a strength could manifest as an excess vice. Unfortunately, too many people believe that being aware of the anatomy of character is sufficient. The faulty logic is clear. In the same way, you can't get fit by just knowing anatomy; strengthening character without commitment to ongoing habit development is what would make character become a platitude and values unrealized. Research at the Ivey Business School reveals that the difference between weak and strong character is a 14% difference in leader effectiveness, a 10% difference in leader resilience, and differences in job-related well-being, job satisfaction, leader well-being, work engagement, and organizational commitment, all by 8%. In the face of such research, it is understandable, indeed an obligation, that individuals and organizations would not want to leave character development to chance. There are programs for character development, such as the Harvard/Oxford 'Leading with Character' 30-day online course, Ivey's Leader Character Practitioner Program, and the Virtuosity Character mobile app, which I co-created with Corey Crossan for daily character development. The major challenge, like any habit development, is to cultivate and sustain a character development practice. One of the reasons Corey and I created the Virtuosity app was to embed everything we know about what character is and how to develop it within the app, including ways to strengthen the intention to develop character based on TPB. Our data reveal that many individuals believe that developing character will lead to positive outcomes, and they believe they can develop character behaviors; however, they consistently report that many of these character behaviors are not customary norms, nor is there positive peer influence to support character development. Finally, many report that their lifestyle impedes their character development practices. Digging into what it takes to develop character reveals why it is so difficult and underscores why values are necessary but not sufficient to translate positive intention into action. 4. Character Can Shape Systems The famous saying by Mahatma Gandhi, 'Be the change you want to see in the world,' points in the right direction. First, we need to 'become the change' through character development. Lofty values will be insufficient to shift systems without the strength of character that provides the foundation to realize those lofty values. Recognizing the significant influence of systems that can undermine character, it reinforces the strength of character needed to shape these systems. Many systems, including market value systems, have embedded within them imbalances of character, such as weaknesses in justice, accountability, humility and humanity. It is people who sustain those systems, and often those who have character imbalances. When we elect, select, or promote people with character imbalances, we perpetuate dysfunctional systems. Understanding, developing, and embedding character in our lives and organizations is the only avenue we have to limit the role of market values in our society and allow the other, sustainable, long-term, and human values to guide our collective destiny.
Fast Company
07-07-2025
- Business
- Fast Company
Corporate America soured on ‘business for good.' Here's how to reframe conscious capitalism
Hello and welcome to Modern CEO! I'm Stephanie Mehta, CEO and chief content officer of Mansueto Ventures. Each week this newsletter explores inclusive approaches to leadership drawn from conversations with executives and entrepreneurs, and from the pages of Inc. and Fast Company. If you received this newsletter from a friend, you can sign up to get it yourself every Monday morning. In the fall of 2019, as editor of Fast Company, I commissioned a package of stories on innovators working to reinvent and bolster capitalism to make it more equitable and environmentally sustainable—the theory being that a system that works for everyone is good for business and society. The print magazine featured a close-up photograph of Patagonia founder Yvon Chouinard with the provocative headline: ' Capitalism is dead. Long live capitalism.' Six years later, those stories feel almost quaint, and Fast Company has published something of a rejoinder. Its summer cover story, ' How 'business for good' went bad—and what comes next,' explores the fall and future of so-called stakeholder capitalism, which posits that CEOs should lead their companies to serve not just shareholders but also employees, customers, suppliers, local communities, and the environment. (The story is behind Fast Company 's paywall. Modern CEO readers who aren't yet subscribers can access a one-day premium pass here.) Enlightened self-interest's ROI In the piece, writer James Surowiecki highlights the shifting economic and political winds that have swiftly eroded diversity, environmental, and other societal initiatives. He writes: 'This reversal has been so fast and so dramatic that even many of the youngest mission-driven companies now look like relics of a bygone era, while the environment that spawned them feels like little more than a dream.' Stakeholder capitalism isn't exactly dead, though. Proponents argue that 'business for good' needs to be underpinned by benefits to the business such as cost savings or customer acquisition. 'Most corporations are adopting ethical sourcing not because of values but because of enlightened self-interest,' says Paul Rice, founder and former CEO of Fair Trade USA, and author of Every Purchase Matters: How Fair Trade Farmers, Companies, and Consumers Are Changing the World. 'They see an opportunity either to de-risk their supply chains or tap into the growing conscious-consumer segment that is looking for sustainable products.' Jonquil Hackenberg, CEO of Ellen MacArthur Foundation, similarly has argued that material security is one reason why companies should embrace the circular economy, which encourages companies and individuals to recycle, refurbish, and reuse materials. This pragmatic approach isn't a bad thing. Rice, who says he was disappointed with the Fast Company piece, argues that a new generation of businesses doesn't see a trade-off between profits and purpose—they see ethical supply chains and sustainability as strategic advantages. It is also worth noting that self-interest never goes out of style. A hyperefficient supply chain that just happens to reduce emissions is sure to withstand investor scrutiny, corporate leadership changes, and even political antagonists. How is your business adhering to conscious capitalism? Is your business committed to conscious capitalism, and if so, how are you positioning your approach to shareholders? Send your ideas to me at stephaniemehta@ and we'll highlight examples in a future newsletter.
Arab News
24-06-2025
- Business
- Arab News
Corporates have changed their tune on ‘stakeholder capitalism'
In 2019, the Business Roundtable, an association of the most powerful CEOs in the US, won widespread praise by announcing its commitment to 'stakeholder capitalism,' which delivers value not only to shareholders, but also to other affected actors, such as employees and communities. Now, however, the Business Roundtable has changed its tune: its April report, 'The Need for Bold Proxy Process Reforms,' reads almost like a manifesto against stakeholder capitalism. The reason for this volte-face is obvious. The Roundtable's 2019 'commitment' was a clear attempt to get on the right side of popular sentiment: Engagement with social and environmental issues was up, and so were demands that powerful institutions get on board. But the political mood has changed. At a time when Americans are preoccupied with intensifying pressures on their own pocketbooks, the new second administration is actively rejecting environmental and social issues. For many CEOs, this looks like a golden opportunity. So, the Business Roundtable is calling on the US Congress to 'enact legislation precluding the inclusion of shareholder proposals relating to environmental, social and political issues in a company's proxy statement.' With this, CEOs want to scrap one of the few formal mechanisms through which a diverse range of stakeholders can influence corporate behavior on issues such as climate risk, inequality, worker safety, and political transparency. There is plenty of precedent for this. While the Business Roundtable's CEOs like to pay lip service to voluntary corporate-responsibility initiatives, they have strenuously objected to public policies that would require them to follow through. The fact is that delivering real value to workers and the environment would cost money, which would reduce shareholder dividends and executive pay — the real priorities of the Business Roundtable's members. In fact, the compensation of CEOs who signed the stakeholder-capitalism 'commitment' has continued to reflect their success in delivering shareholder value. The only way to rein in corporate power is to confront it head-on. Christopher Marquis As many critics warned from the start, the Business Roundtable never meant what it said in 2019. Whatever its claims about environmental or social responsibility, it has always been motivated by three interconnected objectives: avoiding accountability, maximizing short-term profits, and enriching executives. To be sure, even from a commercial perspective, this approach is fundamentally flawed. A growing body of research shows that failure to account for social and environmental imperatives poses clear, material risks to firm operations and performance — not at some point in the distant future, but now. But there is no reason to expect the Business Roundtable's CEOs, or corporations more broadly, to change voluntarily. On the contrary, their April statement lays bare the transactional, opportunistic, and utterly dishonest nature of their moral posturing, which in reality, serves just one purpose: to get consumers and regulators off their backs. This should serve as a wake-up call to lawmakers, who have long cozied up to billionaires and large corporations, placing their hopes, against all evidence, in self-regulation. The only way to rein in corporate power is to confront it head-on. That means mandating corporate commitments to structural change, imposing tougher punishments for corporate abuses, cracking down on dark money, strengthening antitrust enforcement, and expanding regulatory oversight, including of corporate influence over climate, labor, and economic policy. • Christopher Marquis is Professor of Management at the University of Cambridge and the author of "The Profiteers: How Business Privatizes Profits and Socializes Costs" (PublicAffairs, 2024). ©Project Syndicate.
Yahoo
18-06-2025
- Business
- Yahoo
Nine Dean Appoints Andrew Kassoy, Impact Pioneer, as Chairman Emeritus
Recognition reflects Kassoy's invaluable contributions to Nine Dean and the movement for stakeholder capitalism NEW YORK, June 18, 2025--(BUSINESS WIRE)--Nine Dean, a holding company that partners with great businesses to drive long-term value for all stakeholders, today announced the appointment of founding team member Andrew Kassoy as Chairman Emeritus, effective immediately. This recognition reflects Kassoy's significant contributions as a valued partner, collaborator, and friend throughout the conception and launch of Nine Dean. Throughout Nine Dean's development, Kassoy has consistently brought a thoughtful perspective, challenging convention and encouraging innovative thinking around business structure and impact. His commitment to shared prosperity and sustainable growth inspires the Nine Dean team to approach opportunities holistically, and with a focus on enduring, inclusive value creation. "I know I speak for our entire team when I say that Andrew profoundly influences the way we think about growth, innovation, and our responsibility to all those connected to Nine Dean," said Aren LeeKong, CEO of Nine Dean. "As both a partner and a friend, Andrew's thoughtful approach and dedication to building businesses that create lasting, shared value has left a meaningful mark on all of us. We're proud to recognize him as Chairman Emeritus and deeply appreciate the foundation he's helped us build." In addition to his work at Nine Dean, Kassoy is a Co-Founder of B Lab, a non-profit building a global movement to redefine success in business so that all companies compete not just to be best in the world, but best for the world, creating a shared and durable prosperity for all. Before leaving the private sector to found B Lab, Kassoy spent 16 years in the private equity industry, as a Partner at MSD Real Estate Capital, an investment vehicle for Michael Dell, as Managing Director in Credit Suisse First Boston's Private Equity Department, and as a founding partner of DLJ Real Estate Capital Partners. He also served as a Board Member of Echoing Green, as a Skoll Awardee for Social Entrepreneurship, on the U.S. working group of the G8 Social Impact Investing Task Force, and on the Forbes Impact 30 list of leading social entrepreneurs. Kassoy's appointment as Chairman Emeritus follows Nine Dean's launch on June 3, 2025. The growing firm looks forward to announcing its full Board of Directors in due course. About Nine Dean Nine Dean is a holding company that acquires lower-middle market businesses and positions them for enduring success through operational excellence and investing in their most valuable asset: employees. The firm's permanent holding company structure aligns all stakeholders and invests in employees to drive profitability across its operating companies, focused on long-term value and sustainable growth. Based in New York City, Nine Dean was founded by a seasoned team with deep expertise across all facets of business ownership, including entrepreneurial ventures, capital markets, credit, private equity, and operations. More information on Nine Dean is available at View source version on Contacts Nine DeanC Street Advisory Groupninedean@ Sign in to access your portfolio
Fast Company
10-06-2025
- Business
- Fast Company
Stakeholder capitalism is entering new era. So is ‘Fast Company'
Fast Company has been covering a sea change in American business over the last 15 years or so. Companies big and small have embraced the idea that they ought to be accountable not just to shareholders but to all stakeholders—including workers, customers, communities, suppliers, and the planet. Some refer to it as 'stakeholder capitalism.' Others like 'conscious capitalism.' And for those of you who prefer 'woke capitalism,' hey, thanks for joining us. But then, within the last year or two, it all fell apart. Even before Trump retook the presidency, CEOs had begun shuttering DEI programs and climate initiatives, and clamming up about the 'greater good' they were pursuing. What happened? How did a megatrend that transformed boardrooms and C-suites unravel so rapidly? That's the big question we asked James Surowiecki to dissect in this issue's cover story, 'How 'Business for Good' Went Bad.'
