3 Steps for Creating and Implementing a Stakeholder Strategy

Three years after the Business Roundtable urged companies to abandon a singular focus on maximizing shareholder value and, instead, strive to generate value for all stakeholders, many corporate leaders are still reluctant to do so. The reasons include fears of being attacked by extremists who consider stakeholder capitalism to be woke and worries that creating and implementing a stakeholder strategy is impossibly difficult. But even conservative economists like Milton Friedman understood the importance of ministering to key stakeholders’ interests. And this article shows how organizations can create and implement strategies that maximize the net value produced for stakeholders.

In 2019, the Business Roundtable essentially declared the end of the era when the end all and be all of major corporations was maximizing shareholder value. Instead, it stated that companies should serve all stakeholders that materially impact and are impacted by its business…

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This article was written by Darrell Rigby and originally published on hbr.org