MIT Sloan Management Review Article on Reconfigure Your Board to Boost Cooperative Advantage

Given that many organizations are failing the stakeholder capitalism test, bold steps are needed to turn capitalism into a more compassionate economic system. In 2019, signatories of the Business Roundtable’s Statement on the Purpose of a Corporation committed to serve all of their stakeholders, not just shareholders, by investing in employees and compensating them fairly, fostering dignity and respect, and supporting the communities in which they work. But a recent study found that these companies have done no better than nonsignatory organizations at protecting jobs, supporting labor rights, and ensuring workplace safety during the global pandemic.

About the Author

Leon C. Prieto (@leoncprieto) is an associate professor of management at Clayton State University and an associate research fellow at the Cambridge Judge Business School at the University of Cambridge.

Simone T.A. Phipps (@drsimonephipps) is an associate professor of management at Middle Georgia State University and an associate research fellow at the Cambridge Judge Business School. They are the authors of African American Management History: Insights on Gaining a Cooperative Advantage (Emerald Publishing, 2019).

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