Vivek Ramaswamy, writing in Wednesday’s Wall Street Journal, offered a brief definition:
“Stakeholder capitalism” is…the fashionable notion that companies should serve not only their shareholders, but also other interests and society at large.
Ramaswamy is right. What the virtue-signaling social justice warriorlettes (of which Ramaswamy is not one) miss, though, is that companies serve “other interests” and society at large by doing well, making money for their owners, and creating jobs for “other interests” and members of society at large—us citizens.
It ripples. Business owners, whether direct owners or shareholder owners, whose businesses prosper have more money with which to start new businesses; or invest in new, or existing businesses; or grow existing businesses; or expand R&D spending; or…pursue their own other interests and their own views of what society at large needs rather than those things the VSSJws demand they pursue.
Employees of those prospering businesses, new employees of those new and expanded businesses, all have more money with which to pursue their own other interests and their own views of what society at large needs, even start their own new businesses or invest in new or existing businesses, rather than doing what the VSSJws demand they pursue.