And Stakeholder Capitalism is likely to fail again.

Klaus Schwab founder and executive chairman of the World Economic Forum says “We should seize this moment to ensure that stakeholder capitalism remains the new dominant model.”

The massive shift, transition to enter a new decade is now finding that big businesses, corporations are under attack. They have been caught single mindedly shovelling money to its shareholders , corporations, CEOs. This is all done at the expense of customers, employees, the environment and society as a whole. World Economic Forum Stakeholder Capitalism  is everywhere., it’s the mantra of the Business Round Table that was announced in 2019 by almost 200 CEOs of the largest corporations in the world.

Stakeholder capitalism is not a new idea, it was launched by the 1932 management classic ‘The Modern Corporation and Private Property’ Author Adolf A Berle and Gardiner C Means. The idea being that public firms should have professional managers would balance the claims of stakeholders, taking into account public policy, for the next 40years this was the general approach of big business in the US. Over the years following this led mass confusion and conflicting claims among stakeholders consequently this became known as the ‘garbage can organizations’. In the 20th century big business, corporations attempt to implement stakeholder capitalism seemed likely to fail.

Cynics have concluded that stakeholder capitalism is nothing more an elaborate public relations stunt espoused by big business to get through the current PR crisis. They say  they say “business will go on doing what it has done since time immemorial: making money for itself”. That the attraction of stakeholder capitalism does not commit business to do anything particular.. Big business, corporations will just go on shovelling money to their shareholders and CEOs while maintaining a public front of social and environmental sensitivity.

Big business must ultimately pay some attention to all the stakeholders, including shareholders. If big business systematically short change stakeholders other than shareholders The stock market may soar in the short term only but the decade long diversion of business income to shareholders will result in staggering incomes for most of the population. Hence inequality consequently increases, populist leaders will emerge and the political consensus will unravel.

One must ask, how did the world end up in this mess? Big business, corporations in political hot water well its because big business, corporations, CEO’s and Philanthropists such as Bill Gates, their sole purpose is to make money for themselves and shareholders.

The New York Times article September 1970 by the future winner of the Nobel Prize in Economics,  Milton Friedman in response to the confusions of stakeholder capitalism  said “Any business executives who pursued a goal other than making money were unwitting  puppets of the intellectual forces that have been undermining the basis of a free society these past decades.

When the firm prioritizes shareholder value above all the other stakeholders, customers, employees, suppliers, society tend to get short changed”

Stakeholder capitalism is an unacceptable form of institutionalized selfishness that breeds on itself.

Each individual act of selfishness leads to another, yet this steadily gained momentum, by the end of the 20th century it had become the gospel of business. Whilst delivering, transferring of assets to the existing owners of shares this does not deliver or benefit the rest of society. It’s a toxic mix of soaring short term corporate profits, astronomical CEO income that had led to median incomes, growing inequality, periodic massive financial crashes, slowing productivity and a widening distrust of large businesses, corporations all for short term corporation profits. In May 2019, the Republican-led Senate Committee on Small Business and Entrepreneurship, faulted CEOs for focusing too much on the next quarter and not enough on the next generation: “Many business leaders,” said the committee chair, Senator Marco Rubio, “seem to care more about returns for shareholders than the people who work for them.”

In 2019 stakeholder capitalism began to dominate political conversation, corporate leaders began to feel under threat grasped for alternatives. It was June 13th 2019 that the World Economic Forum signed an official partnership agreement with the United Nations, became the favoured ‘whisperers in the ear’ of the UN agencies. This surely was a massive non democratic, human rights breech. The collaboration of a global one world public-private corporate governance, where International laws, regulations, agreements etc., would be influenced by the UN partnership with WEF Multi-stakeholder corporations.

Corporations, large businesses with their Dilbert-Style Managers, an absence of clear priorities among stakeholders, CEOs. Unclear in their minds which priorities they should be pursing hence one result was the Dilbert style of management. The famous Harvard Business Review article in 1977: Abraham Zaleznik’s “Managers and Leaders Are They Different?” This article has been published many times.

Firstly the manager focuses attention on procedure not on substance and then focuses how decisions are made, not the decisions to make. The manager is working in a setting where the goals of the organization are neither clear or perceived worthwhile. This is a hierarchical structure, precise role definitions, elaborate rules and procedures that often conflict with managers.

Secondly the manager communicates to subordinates indirectly by “signals”, rather than clearly stating a position. The traditional rule-driven bureaucracy requires both managers and workers to leave their personal views and attitudes behind in the entry lobby, before they enter the workplace. In this world the managers personal  views are irrelevant, the only safe way to communicate is to deploy indirect signals which obscures who wins and who loses. Its not what the manager believes that matters, but what the system requires between different senior managers where managers have no way of knowing what the right answer is.

Hence they play for time waiting for the dust to settle this is a way of always being. On the winning side. These are routines that are played out, up and down the hierarchy. Helps the middle manager to survive and the corporation to make a nice wealthy fortune, this is played out on a daily basis in Corporations, large organizations worldwide.(The Dilbertian Practice). T

3.In announcing the Davos Manifesto 2020, the chair of the World Economic Form, Klaus Schwab argued that there were only three alternatives: shareholder capitalism, state capitalism and stakeholder capitalism. Both shareholder capitalism and state capitalism are now both political poison. So, Schwab argues, the only alternative is stakeholder capitalism.

In opting for stakeholder capitalism, Schwab missed a better option, which is tried and true ‘the free-market enterprise economy’ just what he has always been obsessed with destroying globally, however the United Nations and the World Economic Forum are now together obsessively promoting, accelerating Multistakeholder Corporate Capitalism to be entrenched in all UN Member Nations.

NZ GOVERNMENT PLANS: Iwi/Moari -Co-Governance. Corporate Capture of NZ, Vision 2040-Entrenchment of UNDRIP in NZ. Ramping up Hate Speech, Mass Surveillance, Iwi Constitution, A huge transition to Stakeholder Capitalism but firstly the destruction of the Free Market Economy

The UNDRIP promotes, favours Iwi Elite. Public-Private Corporate Partnerships. The Iwi Elite being the driving force- the driver of this Public Private Partnership vehicle, the NZ Government is the back seat passenger and the public of New Zealand are the roadkill.   Cultural Marxism is a huge problem that exists behind the closed doors of Parliament and this most be exposed. For what it is then Stakeholder Capitalism will fail. We must promote the Free Market economy in NZ

NOTE: The same applies to Iwi Elite Corporations as I have explained above. Short lived self interested profitable wealth. As a trade off Iwi Elite advances the power of the governments Marxist Socialist ideology. A care less attitude towards New Zealand citizens. A huge Democratic deficit.  The truth is out there and I pray the truth will set us all free from this godless selfish evil doing. .

https://www.forbes.com/sites/stevedenning/2020/01/05/why-stakeholder-capitalism-will-fail/?sh=6a4a3b9b785a