Capitalism Must Reform to Survive

From Shareholders to Stakeholders

Brendan McDermid / Reuters

Companies today face an existential choice. Either they wholeheartedly embrace “stakeholder capitalism” and subscribe to the responsibilities that come with it, by actively taking steps to meet social and environmental goals. Or they stick to an outdated “shareholder capitalism” that prioritizes short-term profits over everything else—and wait for employees, clients, and voters to force change on them from the outside. This assessment may seem harsh coming from someone who has always believed in the pivotal role companies play in the global economy. But there is no alternative. Our ecological footprint has expanded far beyond what the earth can sustain. Our …