August 4, 2009

Shareholders vs Stakeholders

The latest encyclical from Pope had an article on outsourcing problems and globalization and the Pope highlighted the woes of stakeholders while the shareholders made merry. At a superficial level, it appears to make sense and many would buy the argument.. In this connection, Swaminomics column on the Times last week was brilliant and insightful on this subject and I highly recommend it as a must read
I now completely agree with S A Iyer and I do think the narrow /traditional definitions of shareholders and stakeholders don't hold water in this era of globalization and an almost 'one-world economy' scenario. Its time to change and open our minds and rid ourselves from myths and concepts.

2 comments:

narendra shenoy said...

I read that article. You're right. It's a must-read!

devarajan said...

Thanks for the opportunity to read the article. I fully endorse the views in the article.

In my opinion, for most of the problems (not only economics) relating to extremism, various countries' mad run after procurement of defence products, the US is responsible.

Coming to the Pope, he not only pokes his nose into economics, but also in sensitive issues affecting the integrity of a nation. when the BJP itself was ruling, he (I don't know whether he is the same Pope or some other person) said "we can have a good harvest" meaning the conversion of Indians to Christianity. The pity is that the BJP was keeping quiet listening to this statement as a mute spectator in the pretext that the Pope was a State guest.

To tell the truth, US is jealous of India and China. India, in spite of its inherent and self-created problems, is going ahead towards development.