How ‘business for good’ went bad—and what comes next

Salesforce CEO Marc Benioff declared that capitalism as we know it is dead and a new kind of capitalism will emerge, where companies prioritize stakeholders, including employees, customers, and the environment. This idea of stakeholder capitalism became mainstream, with companies like Google, Facebook, and Tesla embracing social and environmental responsibility. However, in recent years, there has been a significant backlash against this movement, with right-wing activist shareholders and politicians pushing back against diversity and inclusion initiatives and environmental, social, and governance investments. Many companies have rolled back their commitments to social responsibility, and the concept of stakeholder capitalism appears to be dying. Despite this, some experts believe that the movement has had a lasting impact on American business and will continue to evolve. The idea of stakeholder capitalism originated in the 1970s, but it gained momentum in the 2010s, particularly after the 2008 financial crisis, when young entrepreneurs and startups began to prioritize social and environmental responsibility. The movement was fueled by the rise of mobile technology, social entrepreneurship programs, and certifications like B Lab's Certified B Corporations. However, the movement's decline was hastened by the rise of inflation, interest rates, and economic uncertainty, which led companies to prioritize shareholder value over social responsibility. Some critics argue that the stakeholder capitalism movement was largely a marketing exercise, with companies making grandiose commitments without taking meaningful action. Nevertheless, the movement has had a lasting impact on American business, and its legacy will continue to shape the way companies approach social and environmental responsibility. The future of stakeholder capitalism is uncertain, but it is clear that the movement has sparked a necessary conversation about the role of business in society and the need for companies to prioritize social and environmental responsibility alongside profit.