LDS On: Stakeholder Capitalism


The Future of Work Is Our Domain

By placing the employee and worker experience at the epicenter of exponential change, we help organizations operationalize digital transformation for every employee.

In this premiere episode of “LDS On”, CEO Mimi Brooks discusses Stakeholder Capitalism. Stakeholder capitalism is an approach to doing business that is gaining renewed scrutiny. This video explains why many companies are shifting their business models to create new value by engaging all stakeholders in a purpose-driven organization.


Welcome to the first video in a series of LDS thought-leadership dedicated to the discussion of transformation management. In each bi-weekly video, we’ll address a topic of strategic interest to business leaders who are guiding their organizations through transformative change.

In this video, we want to address the idea of companies who are shifting their business models to create new value by engaging all stakeholders in a purpose-driven organization. It’s not philanthropy; it’s beyond ethics; it’s about ensuring the very viability of businesses to compete in the digital age and beyond.

So this is LDS On: Stakeholder Capitalism. Let’s get started.

Obviously, maximizing profits by focusing on financial and operational costs and benefits remains a key goal of any business. However, serving the interests of all stakeholders by creating shared and sustained long-term value, is a philosophy that is gaining momentum.

This model has been accelerated as a result of the work evolution we’re seeing with the COVID-19  pandemic. Fundamentally though, stakeholder capitalism is the result of environmental, social, data security, and governance concerns. These factors are becoming increasingly important to companies’ financial performance and resilience during the second wave of the Fourth Industrial Revolution. In these modern business models, growth requires a human-centric approach where the interests of all stakeholders, not just shareholders, are prioritized.

In doing so, issues of long-standing concern, diversity, a cleaner planet, and the sustainability of natural resources, more satisfying and safer human work, become core essentials. Resiliency in a continually changing environment is the game to win. which means organizations will have to effectively balance fast-moving forces, made possible by technology and automation, with the human forces that bring creativity and ingenuity that’s needed for innovation and quick response to unexpected game changers that would destabilize traditional business models.

Therefore, the road to growth in the digital age, along with digital investments and strategies, is the successful implementation of a stakeholder-centric model. Closer to home in our daily work environments, stakeholder models elevate the worker experience to be on par with the long-standing priority given to customer experiences. Among the key tenants here is the provisioning of a work-life balance, investments in the worker experience and their new digital tools, and a genuine focus on transitioning the workforce to be successful in new work models.

Close partnerships and collaboration with employees are needed to acclimate people to these new ways of working. Active worker participation, accountability, and engagement are essential ideas. Investing in infinite learning programs, paying a living wage, and providing equal opportunities for workers are all in play.

In summary, we believe that successful stakeholder capitalism means that every worker feels purposefully engaged in a company vision that they themselves have had an opportunity to mold, making this a key consideration in transformation management.

Thanks for watching. We welcome your comments and ideas on any of the LDS channels that you see below, and we hope to see you next time at LDS On.

Logical Design Solutions (LDS) is a digital strategy and design consultancy to global enterprises. We create experiences that transform business and help people work successfully in the new digital organization. Clients come to LDS because of our reputation for intellectual rigor, our foundation in visionary experience strategy, and our commitment to enabling digital transformation inside the enterprise. Learn More about how LDS has dramatically improved the way that some of the largest corporations in the world do business.