A New Capitalism

Capital has the advantage as the name capitalism implies and those who own or control it have a privileged position in a capitalist society. Capitalism needs to live up to its name and our understanding of capitalism needs to be broadened to include other stakeholders in the very structure of the corporate organization. The notion of human capital has been around for a long time as has the discussion of natural capital referring to the physical environment and the resources it provides. This notion of natural capital involves the proper disposal of toxic substances the company may produce, a provision for disposal of its product when its useful life is ended, and the mitigation of other such environmental impacts. Despite what the Business Roundtable says about stakeholder capitalism, the shareholder is still primary.