Post-Industrial Revolution: Capitalism began as a system focused on private enterprise and wealth creation.
1970s Shareholder Primacy Doctrine: Economist Milton Friedman's theory, which posited that the sole responsibility of businesses is to maximize shareholder value, became dominant. While it drove economic growth, it also contributed to systemic inequality and environmental harm.
1970s
The Flaws of Shareholder Capitalism
Inclusive Capitalism Timeline
Introduced by thinkers like R. Edward Freeman, stakeholder capitalism expanded the focus of businesses to include employees, communities, customers, and the environment.
Advocates recognized that capitalism could create more inclusive and sustainable outcomes by broadening its beneficiaries.
1980s–1990s
Emergence of Stakeholder Capitalism
The crisis highlighted the downsides of unregulated capitalism, including systemic risk, financial instability, and widening inequality.
This sparked renewed interest in reimagining capitalism to address its inherent flaws.
2008
Global Financial Crisis
The United Nations' Sustainable Development Goals (SDGs) provided a global framework for addressing inequality, poverty, and climate change.
Businesses began aligning their practices with these goals, reflecting a shift toward inclusive capitalism.
2015
Sustainable Development Goals
Founded by Lynn Forester de Rothschild, the Council formalized a global effort to align capitalism with societal needs, backed by commitments from prominent businesses and faith organizations.
2019
Council for Inclusive Capitalism
The pandemic exposed deep societal inequalities and accelerated discussions around inclusivity in economic systems.
2020–2021
COVID-19 Pandemic
Lynn Forester de Rothschild
Founder and Chair of the Council for Inclusive Capitalism
Advocate for transforming capitalism to benefit all stakeholders, including workers, communities, and the environment. Her work emphasizes long-term value creation and addressing systemic inequality.
Klaus Schwab
Founder and Executive Chairman of the World Economic Forum (WEF)
Promoter of stakeholder capitalism, which aligns closely with inclusive capitalism by advocating that businesses serve the interests of all stakeholders (not just shareholders), including employees, customers, and the planet. Schwab’s book, Stakeholder Capitalism: A Global Economy that Works for Progress, People and Planet, outlines his vision for an inclusive economic future.
Mariana Mazzucato
Economist and author of The Value of Everything and Mission Economy
Advocates for redefining value in capitalism, emphasizing the importance of public investment and collaboration between governments and businesses to achieve societal goals. Focuses on how inclusive capitalism can address inequality and promote innovation.
Raj Sisodia
Co-founder of Conscious Capitalism
As co-founder of Conscious Capitalism, a movement that promotes business as a force for good by focusing on purpose, stakeholder integration, and conscious leadership, Raj's work stresses the role of businesses in creating broader societal impact while achieving profitability.
Larry Fink
CEO of BlackRock, the world’s largest asset manager
Prominent advocate for ESG (Environmental, Social, and Governance) investing and the need for businesses to focus on long-term value creation for all stakeholders. His annual letters to CEOs emphasize the importance of aligning profits with purpose.
John Elkington
Sustainability expert and creator of the triple bottom line (TBL) concept
Creator of the triple bottom line (TBL) concept, which considers environmental, social, and financial performance as interconnected pillars of business success. His approach aligns with inclusive capitalism by encouraging businesses to balance profit with broader societal impact.