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Stakeholder capitalism: Separating the genuine from the fake
To be seen as credible, businesses must proportionally invest resources across the firm, and pre-commit to measurable objectives
Published Fri, Jan 31, 2020 · 09:50 PM
MILTON Friedman versus Klaus Schwab - it was a battle between two worldviews.
In 1970, Friedman wrote his seminal essay on the role of the firm, effectively arguing that the "business of business is business" and that wider stakeholder considerations can be value-destructive.
In 1973, Klaus Schwab's Davos Manifesto argued that management must also serve employees and society, as a "trustee of the material universe for future generations". While Friedman may have won the sprint, Schwab may be winning the marathon.
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