The rise of “stakeholder capitalism” has been widely noted, but imperfectly understood.
If you would like to learn more about stakeholder capitalism, its history, and current realities, below is a curated list of readings and podcasts on the stakeholder topic.
Historically Important Readings
- Capitalism and Freedom
Milton Friedman
University of Chicago Press, 1962 - "The Social Responsibility of Business is to Increase its Profits"
Milton Friedman
The New York Times Magazine, 1970 - “Production, Information Costs, and Economic Organization”
Armen A. Alchian and Harold Demsetz
The American Economic Review, 1972 - "The Role of Market Forces in Assuring Contractual Performance"
Benjamin Klein and Keith B. Leffler
Journal of Political Economy, 1981 - ‘‘An Economist’s Perspective on the Theory of the Firm’’
Oliver Hart
Columbia Law Review, 1989 - "The Illusory Promise of Stakeholder Governance"
Lucian Bebchuk and Roberto Tallarita
Cornell Law Review, 2020
Stakeholder Capitalism 101
- Strategic Management: A Stakeholder Approach
R. Edward Freeman
Cambridge University Press - “The Politics of Stakeholder Theory”
R. Edward Freeman
Cambridge University Press, Business Ethics Quarterly - “Stakeholder Capitalism”
R. Edward Freeman, Kirsten Martin, and Bidhan Parmar
Journal of Business Ethics - “Business Roundtable Redefines the Purpose of a Corporation to Promote ‘An Economy That Serves All Americans’”
Business Roundtable - "Should the Modern Corporation Maximize Shareholder Value?"
Sanjai Bhagat and R. Glenn Hubbard
AEI Economic Perspectives - The Shareholder Value Myth
Lynn A. Stout - 4 Business Ideas That Changed the World: Shareholder Value
Harvard Business Review podcast - Is Stakeholder Capitalism the Future?
Yale School of Management webinar
The Role of the CEO
- “Rising CEOs: Lessons from the McKinsey Leadership Forum”
Meagan Hill, Celia Huber, Ishaan Seth, and Kurt Strovink
McKinsey Quarterly - "Does Your Company's Culture Reinforce Its Strategy and Purpose?"
Hubert Joly
Harvard Business review - “When CEOs Should Speak Up on Polarizing Issues”
Alison Taylor
Harvard Business Review - The Heart of Business: Leadership Principles for the Next Era of Capitalism
Hubert Joly
Harvard Business Review Press
Governance
- “How Boards Can Guide Company Strategy on Social Issues”
Andrea Hagelgans and Lex Suvanto
Harvard Business Review - “Compensation Packages That Actually Drive Performance”
Boris Groysberg, Sarah Abbott, Michael R. Marino, and Metin Aksoy
Harvard Business Review - “Linking Executive Pay to Sustainability Goals”
Martha Cook, Katherine Savage, and Frederic Barge
Harvard Business Review
Responsible Business
- “Why Sustainability Is Now the Key Driver of Innovation”
Ram Nidumolu, C.K. Prahalad, and M.R. Rangaswami
Harvard Business Review - “Legitimation dynamics: How SROI Could Mobilize Resources for New Constituencies”
Kate Cooney
Science Direct - “Measuring the Social Returns of Nonprofits and Social Enterprises: The Promise and Perils of the SROI”
Kate Cooney
Nonprofit Policy Forum - The Power of And: Responsible Business Without Trade-offs
R. Edward Freeman, Kirsten E. Martin, and Bidhan L. Parmar
Columbia Business School Publishing - Grow the Pie
Alex Edmans
Cambridge University Press
Shared Value Creation
- “Creating Shared Value”
Michael E. Porter and Mark R. Kramer
Harvard Business Review - “To Solve a Tough Problem, Reframe it”
Julia Binder and Michael D. Watkins
Harvard Business Review - “How to Manage Complex Stakeholder Interests? Think Like a Designer.”
Jon Iwata, Nicolas Maitret and Lisa Maulhardt
Fortune - “Why Corporate America Broke up with Design”
Suzanne LaBarre
Fast Company - The Opposable Mind: How Successful Leaders Win Through Integrative Thinking
Roger L. Martin
Harvard Business Review Press