A community of leaders joining forces to transform their practices and become drivers of a regenerative economy
Imagine a world where leaders across industries and sectors deeply engage beyond their siloes, a world where all can play a role in building a new and healthier economic paradigm
Regenerative Alliance has the ambitious goal of facilitating the transition of the private sector towards a regenerative force. With the support of business leaders across industries as well as influencers beyond the business sector, Regenerative Alliance is a members network, a place to exchange, learn and share in order to create a movement for an inclusive and regenerative economy.
NEWS from the Network
Stakeholder Governance has Gained Wide Validation—It’s Time to Make the Shift From Shareholder Primacy
In 1970, American economist Milton Friedman published what is often referred to as the seminal and definitive essay where he declared the purpose of business and its role in society as limited exclusively to increasing earnings for directors, investors, and especially, for public companies, shareholders. This maxim is termed shareholder primacy. For the past 50 years, businesses have been bound to maximize profits, meaning business directors at these companies are not incentivized or allowed — at risk of legal action in some instances — to make decisions that take into account the environment, the financial well-being of employees, or the health of the communities they operate in unless that choice is the most profitable choice.
A growing movement of people, including business leaders, distinguished academic researchers, policymakers, lawyers and more, recognizes this system cannot continue its never-ending need for growth and survive into the long term. These movement leaders also recognize that our growing global inequities are exacerbated by the current systemic commitment to shareholder primacy. A new economy is being built, one where businesses prioritize and consider their impact on all the stakeholders — including communities, workers, customers, and the environment.
As leaders move toward stakeholder capitalism, the community of Certified B Corporations has received attention as a model for its reliance on an independent assessment and adoption of a stakeholder governance framework for businesses that allows considerations beyond shareholders.
A Report on Stakeholder Capitalism: Global Momentum in the Drive for Systemic Change – Find the report on the BCorp website here