The Meaning of “Stakeholder Value” in Times of Crisis

#StakeholderEngagement

We are dealing with multiple crises today: the immediate crisis of the COVID-19 pandemic, and the slightly less immediate but equally dire climate crisis. Most companies, and most people, are scrambling today to stay afloat as the economy falls apart around us. As we invest trillions of dollars of public money, how will we direct those investments? Will they be focused on rebuilding the status quo and perpetuating our current "business as usual" trajectory, which is driving us toward potential climate catastrophe? Or will they be focused on building forward toward a better future, where we all have clean air, a safe livable climate, and good jobs?

The statements by many in the last year about "stakeholder capitalism" and "stakeholder value" give us some hope that we'll use the immediate crisis to create the foundation for the future we need. Recent actions by most companies, however, fall short. What will it take to get us to work together to build a better future?