Stakeholder or Shareholder Capitalism? (LSE In-Person Public Lecture)

This event will provoke further debate on the question of stakeholder vs shareholder capitalism. In this lecture, Professor David McLean will make a case for shareholder capitalism, understood as an approach that emphasises beneficial trade within the rules of the game, within which firms fuel innovation and economic growth.

Based on his newly published book “The Case for Shareholder Capitalism”, David McLean will explain how embracing shareholder capitalism doesn't negate the significance of other institutions; rather, it allows businesses to excel in providing the goods, services, and jobs that make society better off. Shareholder capitalism rests not on disregarding stakeholders but thrives on mutually beneficial partnerships. In such a framework, managers are entrusted to maximize shareholder value, focusing on companies' long-term success, which drives overall prosperity. Profits, the ultimate measure of value, steer businesses toward creating goods and services that benefit society.

This lecture will be relevant for anyone interested in the role of business in society, business ethics, questions of how rival objectives may be balanced in commercial organisations, as well as Environmental Social Governance (ESG) investing and Corporate Social Responsibility (CSR).

This public lecture is organised by the LSE Hayek Program, based in STICERD, London School of Economics.

About the speaker

David McLean is the William G Droms Professor of Finance and Finance Area Chair at Georgetown University's McDonough School of Business. His research interests are in stock return predictability, behavioral finance, and the interplay between financial markets and corporate investment. David’s papers have been published in leading finance journals, such as the Journal of Finance, Journal of Financial Economics, and Review of Financial Studies.

Host or Publisher LSE Hayek Program