Stakeholder Capitalism: four tips to futureproof your business

• Healthy_Environment
• Healthy_Business
• Responsible Business and Strategy
• Environmental, Social and Governance (ESG)

This toolkit, written in partnership with Hogan Lovells, an American-British law firm co-headquartered in London and Washington, DC. and Business in the Community (BITC) member, outlines different methods companies can use to embed stakeholder accountability through various corporate governance structures.

Failing to acknowledge the interdependence of business and its stakeholders is not a sustainable business strategy. Increasing ESG (environmental, social and governance) regulation and a developing focus on stakeholder capitalism mean that a lack of understanding of directors’ duties and the role of stakeholder accountability could lead to reputational damage and liability for boards. This resource offers advice on how to embed stakeholder accountability through various corporate governance structures.

What is stakeholder capitalism?

Stakeholder capitalism is a form of capitalism in which companies seek long-term value creation by taking into account the needs of all their stakeholders, and society at large¹.

Stakeholder capitalism: four tips to futureproof your business

In this short video Alastair Loasby, Responsible Business and Strategy Director at BITC shares four tips to get you started on your journey to stakeholder capitalism.

1. Identify your stakeholders.
2. Stakeholder engagement is not stakeholder accountability unless you listen and respond.
3. Measure and communicate the links between stakeholder capitalism and commercial success.
4. Become a leader in stakeholder governance before it becomes compulsory.

Learn more by downloading the toolkit.

Resources to embed stakeholder accountability

BITC has published two new resources to understand how companies can embed stakeholder accountability through their corporate governance structures.

Alongside this toolkit is a report, Is Legislation the Best Way to Achieve Stakeholder Capitalism? It summarises research carried out by Hogan Lovells and BITC, in partnership with the Better Business Act campaign (BBA). It seeks to understand how, and if, business leaders believe the changes proposed by the BBA campaign could empower UK company directors to lead their organisations in creating a cleaner, greener, fairer future for all. Additionally, this report highlights best practice and explores potential concerns about the changes.

Download Is Legislation the Best Way to Achieve Stakeholder Capitalism?

Responsible Business and Strategy

Responsible business is critical to tackling the big issues facing the world. We need businesses to be faster, braver and bolder in their actions.

BITC is working to dramatically increase the pace and scale of responsible business, in order to meet the United Nations’ Global Goals, also known as the Sustainable Development Goals (SDGs).

Whatever issue, ESG (environment, social or governance factor), sustainability topic or specific Global Goal your business is focusing on, we can help your organisation be faster, braver and bolder. We will accelerate your progress to becoming a more responsible business and together create greater positive change. 

Find out more about how BITC is dramatically increasing the pace and scale of responsible business.

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