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Unpacking Stakeholder Governance

Definition of Stakeholder Governance: Stakeholder Governance implies changing the foundational structure of companies. It is achieved when purpose is anchored in the company’s governing documents and when a legal governance structure is created that will preserve the mission of the company over time. Thereby, it sets the foundation for consistent, coherent and sustainable stakeholder and impact management.

While the idea that companies are responsible for the impact they have on the world may seem like a no-brainer in this day and age, there is resistance, confusion, concerns and some fear to such a proposal.

Our challenge: Dominant business thinking remains profit-led, and the language around stakeholder governance and what it might mean for leadership’s own liability isn’t so clear.

To address these concerns, we need to prove that stakeholder governance is possible, beneficial in the long-term, and that there are best practices for implementing it.

Benefits of stakeholder governance according to European B Corps

5 questions

Common Myths About Shareholder Primacy

5 questions