Why Is Stakeholder Capitalism Stuck In The PR Phase?

Taking Stakeholder Capitalism Beyond The Press Release

Question:

Answer:

In some respects, we are still in the PR-stage of stakeholder capitalism. The road to large-scale corporate change takes time. We will face challenges.

In fact, an analysis of change management initiatives from Singaporean businesses found that for every five days spent on organizational restructuring, cultural alignment, and market entry efforts, 3.5 days go to waste. In other words, 70% of our efforts to create meaningful change fall short of their intended goals. They fail.

But it’s only failure if these businesses stop there — if they stop pursuing their stated goals. In the same vein, our journey to a more equitable world starts with a commitment to stakeholder capitalism. It would be a failure to stop here at the PR and pledge-level.

To take stakeholder capitalism beyond the press release, companies need a road map that is:

  • Communicable, so people buy in to the vision
  • Standard, to provide structure and efficiency
  • Transparent, to provide accountability
  • Data-driven, to ascertain progress
  • Proactive
  • Agile

The task at hand is no small undertaking, but that’s not an excuse to stay put. We need to roll up our sleeves and get to work.

While there are stakeholder capitalism scorecards emerging, implementation remains ad-hoc and voluntary. (For instance, only 4% of companies choose to publish detailed data on employee gender and race.) On top of that, we still need to address issues with data auditing and accuracy.

So where does this leave us?

  • Reviving the middle class
  • Lifting people out of poverty
  • Boosting consumer spending
  • Expanding the economy by $512 billion
  • And ultimately, unlocking the $2 trillion economic opportunity of intersectional gender equity.

Next steps:

This article was first published on my website.

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CEO of Pipeline Equity | Gender Economist | Award-Winning Leader | On a mission to achieve gender equity, once and for all. www.pipelineequity.com