The Shift to Stakeholder Capitalism — Is It Transformative, or Simply Incremental Improvement?

  • Propose a change in economic system design? No.
  • Define sustainability? No.
  • Distinguish sustainable from unsustainable performance? No.
  • Set an intention to serve the wellbeing of all beings? No.
Figure 1: A summary of outcomes of the 2020 Edelman Trust Barometer
  • Rightsholders: replacing the stakeholder concept with the more robust idea of rightsholders;
  • Thresholds & Allocations: asserting the need to apply normative sustainability thresholds & organizational allocations (beyond incrementalist ESG); and
  • True Measures: implementing “true” measures on costing, benefiting, pricing, taxing, and compensation.
Figure 2: Impacts and changes of the rightsholder concept, leading to wellbeing
  • vet, validate, and stimulate threshold determinations and allocations approaches for fairly sharing resources (and responsibilities for respecting thresholds);
  • facilitate widespread usage by supporting development of off-the-shelf methodologies for applying thresholds & allocations; and
  • promote trust by adjudicating disputes over threshold determinations and allocation claims.
Figure 3: The Five Ts that comprise a Regenerative & Distributive Economy
  • True Costs cover the actual impacts on nature and humanity, eliminating the perverse “externalization” of negative effects only and “internalization” of positive effects only;
  • True Benefits: balances “depreciation” with “appreciation” of positive effects;
  • True Prices: Price aligns with sustainable impact, with unsustainable products and services rising beyond affordability;
  • True Taxes: Levy adverse impacts (resource overuse, pollution) and liberate positive impacts (labor) from taxation;
  • True Compensation: Link incentives to sustainable outcomes, including sustainable levels of income and benefits.
  • Shareholder Primacy & Trickle-Down Economics
  • Monocapitalism
  • Escape Routes (Bunkers, Planetary Colonization)
  • “Sustainability” without Prosperity, Wellbeing and Intergenerational Equity
  • Leadership that isn’t Stewardship
  • Enterprise & Portfolio Risk that don’t recognise Systemic & Existential Risk
  • Environmental / Social / Governance (ESG) & Corporate Social Responsibility (CSR)
  • Impact Valuation / Impact Investing
  • Sustainability Reporting without Sustainability Context
  • Stakeholder Capitalism

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r3.0 is a pre-competitive & market-making non-profit delivering groundbreaking Blueprints, Transformation Journeys and Conferences for system value creation.

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r3.0 is a pre-competitive & market-making non-profit delivering groundbreaking Blueprints, Transformation Journeys and Conferences for system value creation.

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