Companies talk the talk of creating stakeholder value, but most don’t walk the talk. In this article, the author outlines two major reasons why — an insular financial sector and stock buybacks — and describes a new model for a truly symbiotic relationship among business, government, and citizens. For this model to succeed, business and government in particular need to address three key questions: What should we create? How should we evaluate social impact? And how should we share?
Buy CopiesThe private sector is often considered to be the heart of wealth creation and innovation — the late 1990s and early 2000s success story of Silicon Valley being a prime example. In this model, shareholder value is seen as the ultimate measure of a company’s success. Indeed, the idea that businesses are the most productive actors in the economy has served as a convenient justification for high incomes and great wealth.
From articles on “Successful Wives of Successful Executives” to “Women Rising: The Unseen Barriers.”
Mariana Mazzucato is a professor in the Economics of Innovation and Public Value at University College London, where she is the founding director of the UCL Institute for Innovation and Public Purpose (IIPP). She is the author of Mission Economy: A Moonshot Guide to Changing Capitalism.
