OBITUARY:Stakeholder precedents

Dr Michael de Podesta
Thursday 25 January 1996 00:02 GMT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

From Dr Michael de Podesta

Sir: I have been surprised that, in the debate on the concrete meaning of the term "stakeholder", little attention has been drawn to the relevance of developments in the ownership of building societies. The mutual structure of building societies made stakeholders of both staff and customers, investors and borrowers. At the instant at which the societies are privatised, this stakeholding is preserved since the institution is still owned by its staff and customers. However, as share ownership by customers becomes diluted over the years, it becomes in the interests of ex-members wearing a shareholding hat to seek higher returns on their "investment".

Building societies are (or were) examples of how stakeholding could exist in a real complex world. However, the destruction of mutuality by get-rich-quick merchants at the head of the societies shows how delicate mutual structures are, and how they must be protected by law. Share ownership - unless restricted to customers and staff - is not stakeholding; it's just plain old capitalism.

Sincerely,

Michael de Podesta

Birkbeck College

University of London

London, WC1

22 January

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in