Capitalism recoupled

Arbeitspapier

This paper examines major forces that have decoupled economic and business prosperity from social prosperity and explores how recoupling can be promoted. Economists have specified well-known conditions under which free market enterprise with shareholder value maximization is efficient. These conditions are systematically violated by three forces - globalization, technological advance and financialization (GTF) - that have weakened the connections between economies and societies over the past four decades. Consequently, the recoupling process requires abandoning the default premise of economic decision making that social progress follows financial performance. For business, it calls for a move from shareholder to stakeholder value. For government, it calls for setting legal obligations, targets and incentives to ensure that stakeholder value is compatible with a rigorously defined concept of 'societal and planetary value.'

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Kiel Working Paper ; No. 2191

Classification and Topics

• Classification: Wirtschaft ; Business Administration: General ; Corporate Culture; Diversity; Social Responsibility ; Social Economics‡ ; Economic Methodology
• Subject: recoupling ; shareholder value ; stakeholder value ; wellbeing ; globalization ; technological advance ; financialization

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kelly, Colm ; Snower, Dennis J.
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy (IfW)
• (where): Kiel
• (when): 2021

Further information

• Handle: http://hdl.handle.net/10419/235615
• Last update: 10.03.2025, 11:43 AM CET