What is Stakeholder Capitalism and Why is it Dangerous?
By Dillon
On January 19, 2021
In Liberty, Money, Regulations, The State
Stakeholder Capitalism is one of those ideas that works great on a t-shirt and makes people feel more clever than they actually are.
Stakeholder Capitalism is the theory that firms should be accountable to their stakeholders instead of their shareholders. Meaning, instead of serving their owners and being accountable to their owners, they should cater to the desires of the nebulous “society.”
In this post, I’ll try to break down the problems with the concepts of Stakeholder Capitalism, explain what it really is, and why it would have disastrous consequences.
The reality is, it’s just another collectivist idea that makes some people feel warm and fuzzy.
One of the reasons it’s a stupid idea is for the same reason that design by committee is a stupid idea. Here’s a comic that explains it:
https://mainstreetcrypto.com/articles/what-is-stakeholder-capitalism/
