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Microsoft CEO Satya Nadella says companies should be valued by the impact they have on the communities they operate within, rather than internal profits or employment.
Amid a global pandemic, months-long protests over racial inequality and a bitterly contested election, the CEO of the world’s second largest public company says now is the time for America to reimagine capitalism.
“It’s fair, in today in 2020, in the midst of this pandemic, to essentially have a referendum on capitalism,” Satya Nadella, Microsoft’s CEO, said Wednesday during the Forbes JUST 100 virtual summit. “We all have to recognize what is that social core purpose of a corporation.”
In short, Nadella said, companies like Microsoft should be measured by the number of jobs and revenue created outside of the company and the economic impact they have on the markets where they operate, as opposed to surpluses generated within a company.
Nadella’s comments, which he says were inspired by a book published last year by Oxford management studies professor Colin Mayer, follow ongoing calls for business leaders to commit to steering their corporations toward so-called ‘stakeholder capitalism.’
Earlier this year, the World Economic Forum at Davos used the phrase as …
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