In a world increasingly driven by profit and shareholder value, the concept of the common good often takes a backseat. Dr. Robert Reich, a public policy luminary, recently penned an essay based on Chapter 6 of his 2018 book, “The Common Good,” which serves as a timely reminder of the erosion of stakeholder capitalism. As someone who has long admired Dr. Reich and who regularly addresses similar themes on my blog, Breaking Barriers, I find his work to be a beacon of heroism in these trying times.
The Rise and Fall of Stakeholder Capitalism
Reich’s essay focuses on Jack Welch, the former CEO of GE, who epitomized the shift from stakeholder to shareholder capitalism. Welch’s tenure saw GE’s stock value soar, but at the cost of American jobs and community investment. This shift wasn’t just a GE phenomenon; it was symptomatic of a broader change in American capitalism that began in the 1980s.
The Common Good vs. The Bottom Line
In my blog, Breaking Barriers, I often explore the intersection of public policy, technology, and social justice. The concept of the common good is a recurring theme, whether I’m discussing the implications of AI on employment or advocating for equitable healthcare. Reich’s essay resonates deeply with me, as it underscores the necessity of considering all stakeholders, not just shareholders, in corporate decisions.
The Externalities of Profit-Maximization
Reich astutely points out that the social costs of profit-maximization—termed “externalities” in economics—have grown so large that they overshadow any internal efficiencies. This echoes my own research and writings, where I’ve highlighted how policy decisions can exacerbate social inequalities and contribute to systemic issues like poverty and lack of access to quality education.
The Heroism of Advocacy
What makes Dr. Reich a hero in my eyes is his unwavering commitment to the common good. He challenges the status quo and advocates for a more equitable system. Heroism doesn’t always come in grand gestures; sometimes, it’s the consistent and relentless pursuit of what is right.
A Call to Action
As Reich suggests, CEOs and top executives have the power to change the rules. They can lobby for laws that resurrect stakeholder capitalism and contribute to the common good. This is not just a matter of corporate ethics; it’s a matter of societal well-being.
In a world that often feels like it’s spiraling away from the ideals that once held us together, heroes like Dr. Robert Reich remind us of the path we should be on. It’s a path I strive to walk in my own work, and one I hope more will choose to follow.
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