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Stakeholder capitalism denotes a form of corporate governance that allows all the stakeholders to have a voice in the major decision-making processes as well as the operations of the farm. Since an organization has many stakeholders, they must all be represented on the board of…
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Download file to see previous pages... hat practice stakeholder capitalism do not necessarily promote the interest of shareholders, but rather give reconsiderations to the diverse interests expressed by all the stakeholders (Béland & Cox, 2011). Stakeholder capitalism allows businesses to focus on long-term economic decision-making. The basis of Stakeholder capitalism is contrary to shareholder capitalism, which focuses on profit maximization. Stakeholder capitalism is common in Germany and Japan because corporate governance does not rely on the rights of private property as promoted in the shareholder model of capitalism. Businesses that rely on Stakeholder capitalism are more likely to have a positive reputation because they make decisions that promote the interests of different parties.
De-commodification focuses on analyzing the extent to which social welfare minimizes the market dependence of the people. Therefore, de-commodification can only become a reality when people receive services as their rights without unnecessary dependence on the market. Moreover, the people must be able to sustain a livelihood without exhibiting any measure of dependence on the markets. For this reason, social welfare should ensure that people do not necessarily need to actively participate in market relationships for them to access necessities. Notably, de-commodification promotes the provision of necessities outside the labor market mechanisms. De-commodification has outstanding benefits to workers and individuals because it can raise their collective power. The concept of de-commodification was developed recently, a factor that explains why there is a lack of definitive descriptions of the concept (Hall & Soskice, 2001). However, many people understand the concept of giving citizens a measure of freedom to quit work without facing risks such as lack of income or loss of jobs. Moreover, the fact that people do not have to rely on labor markets to access necessities promotes their wellbeing.
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