From Shareholders to Stakeholders Finance. Recovering  Sustainable Finance

Giovanni Ferri

Published : 2014-05-01

Vol. 55 No. 2 (2014)

From Shareholders to Stakeholders Finance. Recovering Sustainable Finance

Giovanni Ferri

Abstract

The paper argues that re-regulating finance while preserving and augmenting its stakeholder-oriented component – as opposed to the shareholder/profit maximizingcomponent – is needed not only to restore the stability of finance, but also to mend the market economy, saving it. Answering the question why financial re-regulation is advancing so slowly, this paper addresses the historical example of re-regulation of the 1930s. It argues that the lack of a strong prosecutor, such as Ferdinand Pecora in 1933, made the progress of the reform more difficult. It asserts that a serious re-regulation is the only way out to restore financial stability. Appropriate leadership will be needed to secure a reasonably rapid and smooth transition. Finally, the paper analyses why we need Stakeholder Finance.

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Stakeholder Finance, Sustainable Finance

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Ferri, G. (2014). From Shareholders to Stakeholders Finance. Recovering Sustainable Finance. Safe Bank, 55(2), 11–26. Retrieved from https://ojs.bfg.pl/index.php/bb/article/view/372

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