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Business Models and Craigslist.
Read the following articles and then answer the assigned questions.
Failure of Shareholder Capitalism Craigslist - Interview with Craig Newmark Craigslist - Not Maximizing Profits Shareholder vs. Stakeholder Capitalism
Craigslist (both articles)
Business Models And Craigslist
Length: 3 pages (875 Words)
Business Models and Craigslist
The ‘shareholder capitalism’ is the principle that companies exist for the sole purpose of making money for their shareholders (Lind, 2011). In this case, profitability of the company is prioritized over and above all other aspects of corporate operations and management. Shareholder capitalism tends to oppress the customers and the employees but the profits end up being shared by the executive team.
While ‘shareholder’ capitalism focuses on the sustenance of the company’s CEO and oppression of the employees and the customers, the stakeholder capitalism focuses on the sustenance of the workers, customers, and the community (DealBook, n.d.). The stakeholder capitalists seek to motivate their employees, customers, and the community, leaving insignificant funds for the share of the owners of the company. However, in both the shareholder and the stakeholder capitalism, some profits are realized that go to benefit a specific group of the people related to the organization.