4 min read
Sep 2020

10 Things You Should Know about Stakeholder Capitalism


Published September 2020

10 Things You Should Know about Stakeholder Capitalism is a new narrative-style podcast mini-series from the Institute for Corporate Transformation hosted by Amanda Kathryn Roman and Nathan Havey. Episode 1 features the Economics of Mutuality, with Jay Jakub, Chief Advocacy Officer for the EoM movement.

It tells the story of Project Maua in Kenya, which embraces the Economics of Mutuality to combine the business goal of creating a new route to market with the social goal of improving the income and wellbeing of impoverished communities by expanding the distribution of Wrigley products through local micro-distributors and solving a key “last mile” challenge. Read the full case study here. An extract from the podcast has been transcribed below.

[Nathan] For most companies, ‘doing good’ is about writing cheques to charities or engaging in other activities that are not core to the profitable execution of the business. This is what Friedman opposed. But, if you expand the scope of what is counted as profit and loss on the balance sheet of a company, then a very different picture emerges. Not because you are, as Friedman put it, ‘part of the contemporary crop of reformers’, but because you can see, like Jay Jakub and his team, that the continued profitable operation of your company demands it.


[Jay] The rules have changed in the global economy. If you don’t want to be sub-optimal in the way you operate your business, you need to expand your definition of performance and include – with financial capital – social, human and natural capital. There are ways to measure these things with a high level of accuracy, but also with simplicity and uniformity so that you’ve got the tools and techniques at your fingertips.”

Last year, I looked at some interesting statistics. Of the largest 100 economies of the world, 69 of them were corporations. Given all of the challenges and problems society and the environment now face, it’s unconscionable that corporate leaders wouldn’t step up and play their role.

And now, through the Economics of Mutuality, we can show how being more responsible actually makes you more resilient, more sustainable – and actually can make you even more profitable as you go forward. But if you’re all about trying to extract value instead of co-creating it, you’re going to go down as you go forward.


Other Articles

7 min read
Mar 2024
Asia Economics of Mutuality Forum 24-25 April 2024

Korean and global leaders in business, academia, government, and civil society will gather at Hanyang University in Seoul, South Korea, to launch the inaugural Economics of Mutuality Foundation and Hanyang University’s Global Forum on the role of business and investing in society. The event will take place from April 24 to 25, 2024. The two-day event will include addresses by Professor Colin Mayer, former Dean of Oxford University’s Said Business School; Chairman Moon Kook Hyun, President of the New Paradigm Institute and former CEO of Yuhan-Kimberly, and Dr. Jay Jakub, the Executive Director of the Economics of Mutuality Foundation, and co-author of the book, “Completing Capitalism.” The event will highlight the roles of academia, corporations, investors, family offices and entrepreneurs in creating an ecosystem of mutual value co-creation by how companies deploy their capital in society.

2 min read
Mar 2024
Oxford Virtual Executive Education Program 2 May – 20 June 2024

Driving Impact Through Mutual Value Creation, an 8-week online course brought to you by Oxford University’s Saïd Business School and the Economics of Mutuality team, will equip you to walk the talk of Stakeholder Capitalism.

3 min read
Mar 2024
Nordic Economics of Mutuality Forum October 15-16

The first Economics of Mutuality forum to be held in Scandinavia, this event taking place October 15-16, 2024 will be hosted by Brandinnova, the Center for Brand Research at the Norwegian School of Economics (NHH), Jæren Sparebank, and the Economics of Mutuality Foundation.

24 min read
Feb 2024
How Witnessing an Economy of Greed Led Me to Pursue an Economy of Good

Tony Soh is CEO of the National Volunteer & Philanthropy Centre (NVPC) in Singapore. In this interview, he tells us how his experience of the global financial crisis led him to search for better ways of doing business. A graduate of the Oxford Economics of Mutuality Virtual Executive Education Program, he is working to build a movement around corporate purpose in his city