Föhrenbergkreis Finanzwirtschaft

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Posts Tagged ‘stakeholders’

Whatever the question, the answer is Germany

Posted by hkarner - 28. August 2020

Date: 27‑08‑2020

Source: The Economist: Bagehot

Even the British right has got the Teutonic bug

“Why the Germans do it better”—the title of a new book by John Kampfner, a respected journalist—speaks volumes about the current state of the British psyche. The government is replacing Public Health England, the body that was supposed to stop Britons from dying of covid‑19, with a new outfit modelled on the Robert Koch Institute, the body at the centre of Germany’s public‑health system. James Kirkup, head of the centrist Social Market Foundation, says his aim is to “make Britain more like Germany”. Other thinkers are less explicit, but pore over the details of Germany’s technical‑education system or social‑insurance market.

That Britain should turn to Germany for ideas is not surprising given the long, binding ties between the two states. Britain imported its royal family from Hanover in 1714 and German‑born Prince Albert did as much as his wife to shape Victorian England. The idea of the welfare state came from Bismarck. The post‑war German constitution was mostly the work of the British and Americans.

Competition combined with closeness means that Britain has a long‑standing weakness for “Germans do it better” arguments. Before the first world war advocates of national efficiency insisted that Britain needed to invest more in science and education to escape being crushed by the German chariot. From the 1960s, left‑wingers urged that Britain should learn from Germany’s model of stakeholder capitalism. Den Rest des Beitrags lesen »

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The ‘Stakeholders’ vs. the People

Posted by hkarner - 14. Februar 2020

Date: 13‑02‑2020

Source: The Wall Street Journal By Vivek Ramaswamy

Liberals claim they’re troubled by corporate power. So why are they working to expand it?

‘Stakeholder capitalism” is officially here. That’s the fashionable notion that companies should serve not only their shareholders, but also other interests and society at large. Last month Airbnb’s leaders announced a new mandate that the company “benefit all our stakeholders over the long term,” including through tying executive compensation to the company’s social goals. The same week, BlackRock chief Larry Fink issued an open letter to CEOs explaining that companies his massive firm invests with will soon have to abide by the rules of a Sustainability Accounting Standards Board regarding climate change, labor practices and other issues. CEOs at the World Economic Forum in Davos touted similar ideas, as have presidential candidates.

Stakeholder capitalism runs contrary to the demands of U.S. corporate law, which holds that directors and executives have a duty to one master: shareholders. Milton Friedman worried that a shift from shareholder primacy would cause companies to operate less efficiently and be less profitable, leaving investors, workers and consumers worse off. Den Rest des Beitrags lesen »

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Stimmungswandel in Davos?

Posted by hkarner - 3. Februar 2020

Joseph E. Stiglitz, a Nobel laureate in economics, is University Professor at Columbia University and Chief Economist at the Roosevelt Institute. His most recent book is People, Power, and Profits: Progressive Capitalism for an Age of Discontent

DAVOS – Dieses Jahr markierte das 50-jährige Jubiläum der Vorzeigeveranstaltung des Weltwirtschaftsforums, des Treffens der weltweiten Wirtschafts- und Politikeliten in Davos (Schweiz). Seit meiner ersten Teilnahme dort im Jahr 1995 hat sich eine Menge verändert. Damals herrschten Euphorie über die Globalisierung, Hoffnung auf den Übergang der ehemals kommunistischen Länder zur Marktwirtschaft und die Zuversicht, dass neue Technologien neue Perspektiven eröffnen würden, von denen alle profitieren würden. Die Unternehmen würden dabei – in Zusammenarbeit mit den Regierungen – die Richtung weisen.

Heute ist die Stimmung angesichts der Klima-, Umwelt- und Ungleichheitskrisen, vor denen die Welt steht, eine ganz andere. Facebook, das unabhängig von den Folgen für die Demokratie bereit ist, Fehl- und Desinformation sowie politischer Manipulation eine Plattform zu bieten, hat die Gefahren einer privat kontrollierten monopolistischen aufgezeigt. Viele Unternehmensführer, und zwar nicht nur die im Finanzsektor, haben eine bemerkenswerte moralische Verkommenheit an den Tag gelegt.Darüber hinaus steht der Multilateralismus unter Beschuss. Sein traditionell stärkster Verteidiger, die USA, hat nun eine Regierung, die sich dem Motto „America First“ verschrieben hat und die sich dazu bekennt, die weltweite Zusammenarbeit zu untergraben, obwohl die Notwendigkeit zur Kooperation in einer Vielzahl von Bereichen – darunter Frieden, Gesundheit und Umwelt – immer deutlicher wird. Den Rest des Beitrags lesen »

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In Stakeholder Capitalism, Shareholders Are Still King

Posted by hkarner - 21. Januar 2020

Date: 20‑01‑2020

Source: The Wall Street Journal

Corporations are talking big about looking beyond share price. But don’t count on it.

At this week’s World Economic Forum in Davos, two very different visions of stakeholders will be in play.

Stakeholder capitalism reached its apotheosis in 2006 in the U.K., when Prime Minister Tony Blair’s centrist government required directors to take into account the interests of staff, customers, suppliers and the environment, as well as corporate reputation.

It didn’t work: The financial crisis showed the excesses at Britain’s biggest banks, and the reputation of the country’s businesses collapsed.

Now, more than a decade later, big business in the U.S. is talking up stakeholder capitalism as it fends off growing criticism of its place in society. Most prominently, in August, the Business Roundtable released a statement signed by 181 CEOs in which they pledged “a fundamental commitment” to “deliver value to all” stakeholders. Den Rest des Beitrags lesen »

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Walking the Talk of Stakeholder Capitalism

Posted by hkarner - 21. Januar 2020

Richard Samans

Richard Samans is a managing director of the World Economic Forum and Chairman of the Climate Disclosure Standards Board.

Jane Nelson is Director of the Corporate Responsibility Initiative at Harvard Kennedy School.

Corporate governance is undergoing a sea change, as the longstanding principle of „shareholder primacy“ gives way to broader concerns. But recognition of social, environmental, governance, and data stewardship issues is not enough; company boards must also figure out how to integrate shareholder value with corporate responsibility.

DAVOS – The role of corporate boards has never been more important, nor subject to as much scrutiny, as it is today. The technological, environmental, geopolitical, and socioeconomic transformations of the past two decades are driving a re-examination of the prevailing corporate-governance model, just as they are posing fundamental challenges to many areas of public policy and governance.

In particular, these transformations are making environmental, social, governance, and data stewardship (ESG&D) considerations increasingly important to companies’ financial performance and resilience. Den Rest des Beitrags lesen »

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The New Davos Challenge

Posted by hkarner - 19. Januar 2020

Alexander Friedman

Alexander Friedman, a co-founder of Jackson Hole Economics, is a former Chief Executive Officer of GAM Investments, Chief Investment Officer of UBS, Chief Financial Officer of the Bill & Melinda Gates Foundation, and White House Fellow.

Jerry Grinstein is a former CEO of Delta Air Lines and Burlington Northern Railroad, and previously served as Chief Counsel to the United States Senate Commerce Committee.

Larry Hatheway, former Chief Economist at UBS and GAM Investments, is a co-founder of Jackson Hole Economics.

Charles C. Krulak is a former Commandant of the US Marine Corps and President of Birmingham-Southern College.

As political leaders and corporate titans gather in Davos, Switzerland, for the World Economic Forum’s annual meeting, they would do well to consider how the abstract ideal of „stakeholder capitalism“ can be translated into reality. The key to changing the behavior of economic and political elites alike is to change what is measured.

DAVOS – The World Economic Forum’s annual flagship meeting this year will focus on how to build a more cohesive and sustainable world. As always, the topic is timely, but also a little abstract. To help give it more concrete form, we have a few proposals to put the prevailing economic model on a better track and focus the discussion. 

First, it is time to overhaul the US tax code to reduce structural wealth inequality. To that end, America should get rid of the “carried-interest” loophole. A provision that was originally intended to encourage long-term investment has become a massive tax break for financiers working in private equity and at hedge funds. Although the 2017 Tax Cuts and Jobs Act placed some limitations on this finance-friendly rule, it remains in place.By the same token, America should do away with the “stepped-up cost basis” loophole, which has become a key way by which the rich avoid taxation when bequeathing their wealth to their heirs. Den Rest des Beitrags lesen »

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Making Stakeholder Capitalism a Reality

Posted by hkarner - 8. Januar 2020

Lenny Mendonca is Chief Economic and Business Adviser and Director of the California Office of Business and Economic Development.

The recent push by big business in favor of a more socially and environmentally conscious corporate-governance model is not just empty rhetoric. With the public losing trust in business and markets, it is now in everyone’s interest to reform the system so that it delivers prosperity for the many, rather than the few.

BERKELEY – For a half-century, American corporations (and many others around the world) have embraced shareholder primacy, which holds that the only responsibility of business is to maximize profits. But this principle is now being challenged by corporate leaders themselves, with the United States Business Roundtable announcing last year that it will adopt a stakeholder approach that focuses not just on shareholders but also on customers, employees, suppliers, and communities, all of which are deemed essential for business performance.

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What Kind of Capitalism Do We Want?  

Posted by hkarner - 3. Dezember 2019

Date: 02‑12‑2019

Source: Project Syndicate by Klaus Schwab

Klaus Schwab is Founder and Executive Chairman of the World Economic Forum. 

Though the concept of „stakeholder capitalism“ has been around for a half‑century, it has only recently begun to gain traction against the prevailing shareholder‑primacy model of profit maximization. Now, advocates of a more socially conscious economic system must take steps to ensure that their vision takes hold for the long term.

GENEVA – What kind of capitalism do we want? That may be the defining question of our era. If we want to sustain our economic system for future generations, we must answer it correctly.

Generally speaking, we have three models to choose from. The first is “shareholder capitalism,” embraced by most Western corporations, which holds that a corporation’s primary goal should be to maximize its profits. The second model is “state capitalism,” which entrusts the government with setting the direction of the economy, and has risen to prominence in many emerging markets, not least China.

But, compared to these two options, the third has the most to recommend it. “Stakeholder capitalism,” a model I first proposed a half‑century ago, positions private corporations as trustees of society, and is clearly the best response to today’s social and environmental challenges. Den Rest des Beitrags lesen »

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Why America’s CEOs Are Talking About Stakeholder Capitalism

Posted by hkarner - 5. November 2019

Mark Roe is a professor at Harvard Law School. He is the author of studies of the impact of politics on corporate organization and corporate governance in the United States and around the world.

When the US Business Roundtable recently renounced shareholder primacy, the shift – by an organization representing companies with combined annual revenue of more than $7 trillion – prompted a wide range of reactions, from welcoming to dismissive. But the move is primarily an attempt to keep activist shareholders and populist politicians at bay.

CAMBRIDGE – Back in August, the Business Roundtable, which comprises the chief executive officers of America’s largest companies – with combined annual revenues of more than $7 trillion – updated its long-standing statement regarding corporate purpose. It’s not just about shareholders, the CEOs say; their firms must be committed to all stakeholders, including customers, employees, suppliers, communities, and the environment. In fact, shareholders came in last on the CEOs’ new list. And the statement’s principal author, in his apparent exhilaration, is reported to have said that he felt like Thomas Jefferson drafting the Declaration of Independence.

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Is Stakeholder Capitalism Really Back?

Posted by hkarner - 29. August 2019

Joseph E. Stiglitz, a Nobel laureate in economics, is University Professor at Columbia University and Chief Economist at the Roosevelt Institute. He is the author, most recently, of People, Power, and Profits: Progressive Capitalism for an Age of Discontent (W.W. Norton and Allen Lane).

We will have to wait and see whether the US Business Roundtable’s recent statement renouncing corporate governance based on shareholder primacy is merely a publicity stunt. If America’s most powerful CEOs really mean what they say, they will support sweeping legislative reforms.

NEW YORK – For four decades, the prevailing doctrine in the United States has been that corporations should maximize shareholder value – meaning profits and share prices – here and now, come what may, regardless of the consequences to workers, customers, suppliers, and communities. So the statement endorsing stakeholder capitalism, signed earlier this month by virtually all the members of the US Business Roundtable, has caused quite a stir. After all, these are the CEOs of America’s most powerful corporations, telling Americans and the world that business is about more than the bottom line. That is quite an about-face. Or is it?

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