Stakeholder vs. Shareholder
The discussion highlights the misalignment of incentives when stakeholders, such as employees, make decisions that prioritize their interests over the firm's profitability. This can lead to detrimental effects on future growth and overall societal benefits. A responsible government is suggested as a solution to manage externalities, while skepticism remains about the effectiveness of the stakeholder model compared to traditional governance systems.In this clip
From this podcast
All Else Equal: Making Better Decisions
Ep15 "Shareholder vs. Stakeholder Capitalism" with Alex Edmans
Related Questions