It has been a year since 181 CEOs of the Business Roundtable pledged to explicitly move shareholders down the priority list, opting to give greater weight to the interests of other stakeholders when committing resources of their firms. If elected, Democratic presidential candidate Joe Biden has promised to “put an end to the era of shareholder capitalism.”
While stump speeches and grand statements may sound good, what’s the track record for stakeholder capitalism in practice?
Look no further than Europe: The modern stakeholder movement in the United States is an attempt to import European corporatism into U.S. corporate practice and public policy. Spoiler alert: Europe…