Stakeholder Capitalism is the Future of Sustainability
While stakeholder capitalism has been around since the 1970s, it’s only recently this model has taken off. That said, most corporations still struggle to have real impact considering their fragmented ecosystem of business objectives and structured give back programs like ESG and CSR. If sustainability is no longer a ‘nice to have’ but rather a ‘must have’ by consumer demand, how can corporations make sustainability the most SUSTAINABLE practice?
Piril Kadibesegil Yasar, Sustainability Manager, Allianz
In episode 34 of the Alt-Normal, we explore the far reaches of stakeholder capitalism with Piril, a Sustainability Manager at Allianz, one of the world’s largest asset managers. Her passion for social + environmental impact and women’s empowerment started early on having grown up in the developing country of Turkey. Through her leadership since 2014, Allianz Turkey became the first insurance company in the country to commit to the UN Global Compact, sign the Women Empowerment Principles, report under the Global Reporting Initiative and kick off nationwide CSR campaigns in schools.
While stakeholder capitalism (where ALL stakeholders within a business are considered, not just shareholders) isn’t new, it’s taken decades for this concept to find mainstream acceptance and take a seat at the table. That said, a massive gap exists between intent and impact where business objectives exist separately from ESG and CSR (corporate social responsibility) programs of giving back. If sustainability is no longer a ‘nice to have’ but rather a ‘must have’ by consumer demand, how can corporations make sustainability the most SUSTAINABLE practice?
In 2016, UN Secretary General Ban Ki-Moon boldly rallied the greatest minds in advertising at Cannes Lions, asking all participants to “help make sure the SDGs (Sustainable Development Goals) are the business of ALL businesses...and find the best ways to tell the story.” In a post-pandemic moment where companies are grappling with how to put their best foot forward, Piril lays out the basic tenets of the Materiality Exercise to help bridge business strategy, stakeholder interests, SDG goals, systems mapping and consumer feedback to spot the most mutually-beneficial opportunities for creating shared value and ultimately, more benefit and resources for all -- especially those who have been historically underrepresented and in the case of Allianz, historically uninsured.
“We [corporations] can actually create impact where we can change the systems and work with NGOs and governments and resolve these rooted problems in society...this is where it comes back to Sustainable Development Goals.”
With palpable optimism and passion for the power of stakeholder capitalism, Piril moves us to envision the future of shared value in the corporate world. Our conversation ranged in topics including:
Her love for corporations was solidified after taking a yearlong sabbatical to run a B&B with her mom (“I hated every moment away from corporate white collar life”)
The evolution of ESG, CSR and stakeholder capitalism since the 1970s
How to start a company’s sustainability journey towards shared value with the Materiality Exercise
Biggest barrier to operationalizing stakeholder capitalism and closing the intent-impact gap
The future of sustainability practices in corporations
