How To Lead in The

Stakeholder Era
By Huicai Mai
Introduction

Stakeholders?

Shareholders?

The role of business in the future?

The common good = the noble purpose → successful strategies

rather than profit
1. The Purpose of Business Is to Contribute to the
Common Good
The purpose of business → positive difference in people’s lives
→ noble purpose

Profit ≠ the ultimate objective

→ success and profitability

Studies: “firms of endearment” → outperform

Integration of purpose and profits

2. How do Leaders Make this vision a
reality?
 A noble purpose → the needs of the world
the passions of the team
the company’s strengths
its ability to earn a good return on investments

Best Buy → transform its strategy, shift its playing field

achieve growth and success
3. Unleash Human Magic
If work → as means to pay the bills, go on vacation, and retire
→ an uninspired workforce → only 16% of people fully engage at work

Create an environment: employees → the best, biggest version of themselves

→ as a way of finding meaning and fulfillment in life
“What drives you? “
→ discover their personal purposes and how it relates to the company’s purpose.

Treat employees → unique talents, not as “human capital”

simple and basic
an enormous impact
A world driven by more than shareholders → Put people at the center
4. Purpose and People When Things Get Tough

Best Buy’s response to the storm in 2017:

Had 300 employees and faced challenges → Prioritizing employees’ needs and
well-being in times of crisis

→ lead to a successful recovery and increased sales

Leaders → prioritize their people, even in times of hardship → a long-term

success
5. The End of Zero-Sum Leadership

 Zero-sum leadership → no longer effective in today’s business world

 Shift from hero-leaders driven by power, fame, glory, or money to leaders

who value purpose and people

 The future of business → maximize performance

by embracing and mobilizing all stakeholders in a way that aligns with a
noble purpose
making a positive difference in the world
Conclusion

The article introduces a refoundation of business and capitalism that prioritizes the
common good and recognizes the humanity of all stakeholders.

By embracing noble purpose and prioritizing all stakeholders, business can transform
their strategy and operations, resulting in significant growth and success.

This new approach can also contribute to a more sustainable future for both business
and society.
Discussion

Leaders should articulate a noble purpose that is at the intersection of

What the world needs?

What the team is passionate about?

What the company is good at?

And how it can earn a good return on its investments?

This can be a challenging process but can result in significant growth and success .