Call For Regenerative Business and some Answers
Call For Regenerative Business and some Answers
Did you just purchase a used car?
A thought provoking read. If you are a stockholder, here's a perspective on how your money is actually being used. And, if your core values are rebelling against the current way capital markets work here is some sound reasoning.
For entrepreneurs looking toward the future, here's a way to structure you business to invest in the people who work there and the business itself.
Gideon Rosenblatt examines the current state of shareholders vs. stakeholders, and calls for the expansion of the regenerative business model.
To freshen you perspective on regenerative business you can read his earlier post on What Is Regenerative Business.http://goo.gl/SSBKQf
Gideon went about this research from the perspective of the curious mind. In looking for data he discovered two areas needing further substantiation.
Knowing how what actual percentage of benefits go to the top 1% and 10% of shareholders could shed important light on just how much dividends and equity purchases contribute to the concentration of wealth. Another area worth deeper examination is the apparent correlation between shareholder income gains and wage stagnation. Is there data to show actual causation here?
#capitalmarkets #regenerativebusiness
http://www.the-vital-edge.com/stock-market-concentration-of-wealth/
Did you just purchase a used car?
A thought provoking read. If you are a stockholder, here's a perspective on how your money is actually being used. And, if your core values are rebelling against the current way capital markets work here is some sound reasoning.
For entrepreneurs looking toward the future, here's a way to structure you business to invest in the people who work there and the business itself.
Gideon Rosenblatt examines the current state of shareholders vs. stakeholders, and calls for the expansion of the regenerative business model.
To freshen you perspective on regenerative business you can read his earlier post on What Is Regenerative Business.http://goo.gl/SSBKQf
Gideon went about this research from the perspective of the curious mind. In looking for data he discovered two areas needing further substantiation.
Knowing how what actual percentage of benefits go to the top 1% and 10% of shareholders could shed important light on just how much dividends and equity purchases contribute to the concentration of wealth. Another area worth deeper examination is the apparent correlation between shareholder income gains and wage stagnation. Is there data to show actual causation here?
#capitalmarkets #regenerativebusiness
http://www.the-vital-edge.com/stock-market-concentration-of-wealth/
Я С Пониманием... Отношусь - к Людям, Которые Слову... - Данному Не Верны... и Заверять Умеют... - Только.
ReplyDeleteThank you, Zara Altair. I was hesitant to write this piece for a variety of reasons, including that many people in the U.S. (including myself) rely on publicly-traded stocks and mutual funds to supplement their incomes. Advocating change to systems that deal with people's money is tricky. But in a way, what I'm really talking about is taking companies back to the way they used to be run before the advent of shareholder primacy in the seventies.
ReplyDeleteGideon Rosenblatt Yes. If investors change with the change, then change will happen. :) That will require a lot of education, because, as you say, personal income/net worth is at risk.
ReplyDeleteI really like the way you think about the future but measure the present. That was a big chunk of research.
Encouraging business to think in a regenerative manner about structure is a wedge to the future.
Gideon Rosenblatt in your articles conclusion you state,
ReplyDelete"Shareholder primacy is not the same thing as capitalism."
How would you explain the difference?
Happy to try to answer that, Hart GA. Shareholder primacy is actually a relatively recent phenomenon. Milton Friedman, and Michael Jensen and William Meckling published influential articles that laid the intellectual groundwork for shareholder primacy in the 1970’s. The idea then caught on and became more and more integrated into management philosophy, eventually sliding into the curriculum that is taught in finance courses in business schools. It is now dogma but it didn't used to be the chief organizing principle around which publicly-traded companies were organized.
ReplyDeleteThis isn't to say that shareholders didn't own the company prior to the advent of this approach to management. They clearly did, but it wasn't until thirty years ago that this new dogma really took hold. Prior to that, we still had capitalism, but it just wasn't quite as relentlessly focused on extracting profits. When you look at the charts in the article, you can see the flow of money mapping to these changes in philosophy and management practice.
Gideon Rosenblatt I grasped the idea of shareholder primacy, and should/could have phrased the question better... my view is clouded, as it appears that capitalism has just evolved into shareholder primacy by means of stock de/regulation and investment by mutual funds...
ReplyDeleteWould that be fair to say? or are you suggesting that we should scrap the term "capitalism" for better defining descriptors... such as shareholder primacy?
I don't know, Hart GA. I'm not an expert here, but what I would say is that shareholder primacy is like a strain of capitalism. Capitalism features private property, capital accumulation, free markets and I think all of those hold with what I'm talking about. It's just that I'm focused on what happens to that capital accumulation.
ReplyDeleteThat helps thank you, Gideon Rosenblatt.
ReplyDelete