Shareholder vs Stakeholder Capitalism
What We Heard & What Comes Next?
Thank you so much to everyone who joined the #JerichoConversation on Shareholder vs. Stakeholder Capitalism with Robert Shrimsley, UK Chief Political Commentator, Financial Times; (Lord) Mervyn Davies, Chair of Corsair Capital, former Chair, Standard Chartered, and ex-Government Minister; Jane McCormick, Global Head of Tax, KPMG; and Charles Wookey, CEO, Blueprint for Better Business.
“I would like to hopeful for a better capitalism but…“
Robert Shrimsley, Chief Political Commentator, Financial Times
Here’s a quick summary of what we heard and learned:
Robert on why realism may trump optimism
“My main reason for pessimism is the simplest one: this is the greatest economic shock of our lifetimes; the race to get our economy back on track will take precedent.”
“The need-to-have is going to be prioritised over the nice-to-have.”
“One ground for optimism is that everyone is in the crisis at the same time. However, we might all be in it together, but we are not all experiencing it in the same way.”
“If we are to advance from this crisis it will mean addressing one problem at a time – target one inequity at a time. Pick your target and go after it”.
Lord Mervyn Davies on why this is different to life after the Global Financial Crisis
“This shock is a wake-up call for humanity. It will lead to fundamental change. The people who are going to change behaviour now will be consumers through their attitudes. They will put pressure on the corporate sector as a result of what has happened. I have no faith in institutional investors to do this”.
“We all knew intuitively that the NHS was and is one of our greatest assets as a nation and we were not doing enough to fund or service it. A massive adjustment is needed and will be one of the key agenda items for government coming out of the crisis”.
“Inequality remains our biggest challenge. We must make sure that those who suffered before do not suffer again”.
Jane on why no-one has all the answers – new partnerships required
“Coming out of this crisis, there will be losers and bigger losers. Those most able to pay should pay.”
“Tax must be part of the solution to inequality and prevent even greater inequality that could result from this crisis. We need a multi-lateral global response – to what is going on now; to the climate crisis and more”.
“But none of us has all the answers. New partnerships and fresh thinking will be required – government, business and civil society working together”.
Charles on leadership and culture
“To get to a more responsible, human-centric capitalism, I fundamentally believe that culture is more important than law.”
“Culture is shaped by leaders – and what those leaders choose to appeal to in people is so important: their selfishness and greed or their selflessness and contribution? There is an opportunity now to institutionalise virtuousness, bottle it, and it will lead to the positive changes in culture that we wish to see”.
“To quote Vaclav Havel: “leaders have a choice either to appeal to self-interest or altruism””.
If you would to (re-)watch the webinar in full you
can do so here.
Thanks again to Blueprint for Better Business for their partnership for this event. We hope you enjoyed this Conversation as much as we did. Please keep the discussion going, as we look, optimistically, to life after the virus. Please stay in touch.
#JerichoConversations – Next Up
The next Jericho Conversation in the series will take place on Friday 24 April, 12:30-1.45pm.
Pascal Saint Amans, Director, Centre for Tax Policy & Administration, OECD, will lead the discussion. The expert panel includes: Femke Groothuis, Founder & President, The Ex’Tax Project; Chris Morgan, Global Head of Global Tax Policy, KPMG International; and Robert Palmer, Executive Director, Tax Justice UK.
Tax lies at the heart of the social contract. Without tax, there can be no hospitals, no schools, no roads, no health & social services. It is the entry fee we pay for a civilized society.
As the world emerges from the Coronavirus crisis, what changes will be required to global fiscal frameworks, as governments think about how to fund the extraordinary measures they have taken? What does this mean for those committed to a Responsible Tax future? For global harmonization? For Universal Basic Income, health and social care? For the enduring challenges of the Climate Emergency?
In partnership with KPMG International and the global Responsible Tax Project.
#JerichoConversations – Join In
This note is being shared with the wider Jericho community – 4,000+ business leaders, politicians & policymakers, academics and experts, activists and campaigners, media and commentators. Your participation and support is what makes it special. Do get in touch if you have thoughts or ideas to share or would like to find out more about Jericho.
Keep well. Stay safe. Take care.
Robert, Becky, Becca, Roxi and Team Jericho
April 17 2020