The End and Beginning: The Shift Toward Stakeholder Capitalism

The Great Shift explores the transformative changes in global governance, economics, and societal norms as humanity grapples with unprecedented challenges, including climate change, technological disruptions, and shifting geopolitical landscapes. It delves into the evolution of foundational ideas, such as the ‘invisible hand’ of market efficiency and the corporate focus on shareholder primacy, which have guided economic and corporate behaviors for centuries. Highlighting landmark developments—from Milton Friedman’s doctrine on business responsibility to contemporary debates around ESG and stakeholder governance—the work examines how these principles have adapted or been challenged in the face of global crises. The narrative traverses the interplay between agency theory, corporate governance reforms, and sustainability imperatives, underscoring the tension between short-term profits and long-term resilience. By analyzing seminal works, such as Freeman’s stakeholder theory and Jensen and Meckling’s agency costs, it provides a lens through which to view the shifts in corporate priorities. Technological advancements, from artificial intelligence to green innovation, are positioned as both disruptors and enablers of progress. Ultimately, The Great Shift argues for a paradigm rooted in collaborative, inclusive frameworks that balance economic growth with ethical responsibility. It provides a compelling blueprint for navigating the complexities of the twenty-first century, fostering resilience, equity, and sustainability across global systems.