Stakeholder Capitalism Vs. Shareholder Capitalism

American society has changed since the 1940s, one of the major changes in American society was the use of capitalism since the last couple of decades. There were two separate types or levels of capitalism that were used in American society, which was capitalism 2.0 and capitalism 3.0. In the 1940s the beginning of capitalism 2.0 otherwise known as stakeholder capitalism. Stakeholder capitalism is basically a market system that the companies only treat the interests of major stakeholders equally, rather than favoring the investors. The second use of capitalism is capitalism 3.0 otherwise known as shareholder capitalism, which started off in the early 1980s. Shareholder capitalism is to be able to maximize the value of the corporation’s†¦show more content†¦According to her temp work is worse off than the minimum wage. Temp work is when companies help save money, they would hire temp workers for years. They do it because it is cheaper than hiring labor directly, and the y have the right to do so. The main point of a temp worker is supposed to get a permanent job status, but when they are hired by such companies after they are unemployed for three weeks in the same job, they would get hired again by the same company that fired them. This situation relates towards the book Our Kids: The American Dream in Crisis by Robert D. Putnam. In this book, Putnam also talks about the factory owners in his home town and how they also hired temp workers from Putnam home town. Because of the hiring of temp workers, a lot of people were left unemployed, as a result of 55 percent of all jobs in 1965 to 25 percent in 1995 and the rate keeps on falling for employed workers. The unemployment rate rose and fell with the national tides during stakeholder capitalism. During the 2.0 capitalist era, the American economy including capital gains and excluding capital gains was at an all-time low during the great depression and starting the second world war. In shareholder, capitalism corporations are there solely for the only purpose of the investors, that the managers only serve as agents. In this type of capitalism, only short-term profits are the goal, which a company can start laying off workers instead of retraining orShow MoreRelatedTexas Instruments in South Korea1347 Words   |  6 Pagessuccessful outcomes. Using a voice and exit approach to governing this initiate can help with identifying the opportunities that motivate employees to achieve desired outcomes. The concept of shareholder capitalism will be introduced as a way to explain how CEO’s can facilitate communication with various stakeholders. This approach will facilitate better decision making as more available information is used to determine strategy actions. 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