In 2021, Danone’s board of directors, under pressure from activist Bluebell Capital and Artisan Partners, ousted the company’s CEO Emmanuel Faber — a longtime advocate of stakeholder capitalism. This decision puzzled many observers; in an age where the business community seems to be readily embracing stakeholder capitalism, Faber and Danone were stalwarts. Now Unilever — another stakeholder-centered consumer goods darling — is under similar strain from an even more well-equipped and seasoned activist investor, Nelson Peltz.
Managing Shareholders in the Age of Stakeholder Capitalism
How to identify and attract investors who will support your long-term, stakeholder-focused plans.
August 29, 2022
Summary.
Shareholder cultivation in the age of stakeholder capitalism requires management to identify steward shareholders and then foster symbiotic relationships with them. The authors offer four sets of tools managers can use to cultivate steward shareholders. These tools are classified into four types based on two dimensions: time-to-efficacy, which refers to the time needed for the tactics to take effect, and implementation difficulty, which pertains to resource demands and potential resistance managers may face in carrying out the tactics. Using these four sets of tools, managers can build a base of steward shareholders that are sure to offer their support for companies’ stakeholder-centered initiatives.
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HBR Learning
Finance Essentials Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Finance Essentials. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Strengthen your fluency in financial statements.