Shareholder versus Stakeholder Capitalism
Instructor
Program Details
Course Description
In the last year, Target, Disney, and Anheuser-Busch collectively vaporized billions of dollars of shareholder value by taking active stands on social issues. These examples spotlight the growing tension between stakeholder capitalism and shareholder capitalism. This session explores companies' rationale for active stands on social issues and research (including Terjesen's) showing a generally negative effect on shareholder value. Terjesen will overview the role of middle managers, with rubber-stamp approval of top managers, particularly in entertainment, technology, and retail industries. This session will also cover the "double dilution of ownership," as although over 100 million Americans own mutual funds, usually through employer-sponsored retirement plans, the companies (Vanguard, Fidelity, State Street) vote the shares and support companies' social initiatives. (For example, Disney shares include 7.6% Vanguard and 6% BlackRock.) Terjesen concludes with implications for firm behavior and performance, including perceived corporate hypocrisy and the potential lost creativity from constrained viewpoint diversity.Course Info
- Time: 12:30 PM - 2:00 PM
- Date: Thursday, February 1
- Location: Lifelong Learning conference room, 2nd Floor - Continuing Education Building
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Fees:
Member - $30
$100 for any combination of four events, members only
Non-member - $35
One-time guest pass, Member or Non-member at the door - $35.
About the Instructor
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Dr. Siri Terjesen is Associate Dean of Research & External Relations, and Professor at Florida Atlantic University (FAU) in Boca Raton, Florida, and Professor .2 at the Norwegian School of Economics in Bergen, Norway. She is one of 15 voting directors at the National Board for Education Sciences, oversighting the U.S. Department of Education. Dr. Siri Terjesen is Professor and Associate Dean of Florida Atlantic University College of Business, Affiliate Professor at her alma mater the Norwegian School of Economics, and fellow at Heritage Foundation. Her business research ranks in the world’s top 2% most cited scholars. She edits five academic journals and received outstanding teaching awards at undergraduate and graduate levels. She regularly advises national governments and private philanthropies on major research funding, and was appointed by the U.S. President to the National Board for Education Sciences. Her recent op-eds featured in Newsweek, National Review, and Epoch Times.