Podcast Mini Series
10 Things You Should Know About Stakeholder Capitalism
In 2019, the Business Roundtable announced that the purpose of business was no longer to maximize profits for shareholders — the new purpose of business would be to maximize value for stakeholders.
While the announcement was applauded by many, it is becoming clear that what the world is coming to know as “stakeholder capitalism,” lacks a clear definition against which to assess the performance of a firm or even an economy.
In response to this situation, a team comprised of members from a variety of organizations working within the “business as a force for good” movement attempted to create a common definition of the end-state they were all working to achieve. Their work resulted in a brand-agnostic framework, endorsed by all, that identified six essential competencies of a business in the new paradigm.
In the critically acclaimed 10-episode mini series, we introduce, illustrate, and popularize an actionable definition for stakeholder capitalism.
Originally released on September 13, 2020, the 50th anniversary of Milton Friedman’s NYTimes Magazine article, Episode 1 of 10 Things You Should Know About Stakeholder Capitalism introduces the series and its hosts, Amanda Kathryn Roman and Nathan Havey and features Jay Jakub discussing the story behind the Economics of Mutuality.
Episode 2 features the story of Raj Sisodia’s journey of writing the book Firms of Endearment. The research for the book uncovered the startling discovery that stakeholder capitalism management practices resulted in a 14 to 1 performance advantage over a 15-year time period.
Episode 3 features Marianne Malina, President of GSD&M telling the story of the fateful 2009 board meeting where Southwest Airlines CEO Gary Kelley chose to reject the tradeoff choice that led every other major air carrier to begin charging for the 1st and 2nd checked bag. What was pilloried by analysts at the time as an inexplicable rejection of much-needed cash, proved to be the smartest bet in the industry by the end of the year. It wasn’t just luck either. There is a method to Southwest’s “madness” and that is the 3rd thing you should know about stakeholder capitalism.
Episode 4 tells the story of Interface from 1994 through 2019, a period during which the petroleum-dependent company would innovate circles around its competitors reducing its carbon footprint 96% and building a new operating model designed to go beyond minimizing environmental harm to actually maximizing environmental benefit, pulling carbon out of the atmosphere and locking it away in its materials and products.
Episode 5 tells the story of Barry Wehmiller which, during the long tenure of CEO Bob Chapman, has grown into a $3 Billion global enterprise. For the last couple of decades, Chapman and his team have been focused on creating a culture of trust and caring that aims to help people discover their gifts, develop their gifts, and be appreciated for doing so.
Episode 6 tells the story of Christin Swansinger, one of an estimated 17 million Americans that has been sent to prison. Christin got out and like ⅔ of people who are released from prison, she reoffended and was sent back in.
That’s when Christin met Televerde, a call center that operates inside of several prisons in the U.S. that provide excellent service to their customers while helping inmates to establish a foundation that will set them up for success after their release.
Episode 7 shares the story of TRU Colors Brewery in Wilmington, NC, a business co-founded by the leaders of rival gangs in the area with the help of a serial entrepreneur named George Taylor. The rules of TRU Colors are pretty straight forward, Make a livable wage for your job, do your work at a very high level, and use your influence as a gang leader to stop gun violence in your organization. To make that work, Tru Colors has built a special culture, and the storyteller in this episode is the architect of that culture, Khalilah Olokunola, or as she is known at TRU Colors, “KO.”
Episode 8 shares the story of Cafe Momentum, one of the finest restaurants in Dallas that happens to be operated through a groundbreaking internship program for young people who have been recently released from juvenile detention.
While technically a non-profit, this company has produced a $40 million dollar return on a $4 million dollar investment, and it has done so by boldly seeking to solve a worthy problem.
Episode 9 departs from the format of the other episodes in the series to discuss the state of the movement for stakeholder capitalism, and the systems that will need to be addressed to accelerate progress. Jay Jakub from Episode 1, Raj Sisodia from Episode 2 and Bob Chapman from Episode 5 return to share their perspectives.
Episode 9 is also a reveal of sorts in which Amanda and Nathan pull back the curtain on the structure of the podcast, revealing a comprehensive and ambitious definition for Stakeholder Capitalism.
Episode 10 tells the story of the first six years of BIGGBY COFFEE’s transition toward Stakeholder Capitalism. Starting with a chance encounter around a fire pit on an island in the middle of Lake Michigan, to a vision that aims to change workplace culture in America, the BIGGBY journey is an excellent example of the difficulty and the distinction that accompany the work of integrating the 10 things you should know about Stakeholder Capitalism.