Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • Article
  • Harvard Business Review Digital Articles

The EU's Unsustainable Approach to Stakeholder Capitalism

By: Jesse M. Fried and Charles C.Y. Wang
  • Format:Electronic
ShareBar

Abstract

A recent report by the EU claims that investor-driven short-termism is encouraging firms to return cash rather than invest it, which reduces capital available for investment in growth. The authors show that the data behind the report do not support its claims and argue that if the EU implements the recommendations of the report, EU-listed firms will struggle to compete as decision-making slows up and capital gets allocated to questionable ventures.

Keywords

Short-termism; Sustainability; Capital; Investment; Decision Making; Business and Stakeholder Relations; European Union

Citation

Fried, Jesse M., and Charles C.Y. Wang. "The EU's Unsustainable Approach to Stakeholder Capitalism." Harvard Business Review Digital Articles (January 29, 2021).
  • Find it at Harvard

About The Author

Charles C.Y. Wang

Accounting and Management
→More Publications

More from the Authors

    • May 2025
    • Faculty Research

    A Decade of Corporate Governance Reform in Japan (2013-2023)

    By: Charles C.Y. Wang and Akiko Kanno
    • March 2025
    • Faculty Research

    Silicon Valley Bank: Gone in 36 Hours

    By: Jung Koo Kang, Krishna G. Palepu, Charles C.Y. Wang and David Lane
    • March 14, 2025
    • Harvard Crimson

    Harvard Students Should Ignore Calls to Boycott Israel Trek

    By: Jesse M. Fried, Paul A. Gompers, Scott Kominers and Mark C. Poznansky
More from the Authors
  • A Decade of Corporate Governance Reform in Japan (2013-2023) By: Charles C.Y. Wang and Akiko Kanno
  • Silicon Valley Bank: Gone in 36 Hours By: Jung Koo Kang, Krishna G. Palepu, Charles C.Y. Wang and David Lane
  • Harvard Students Should Ignore Calls to Boycott Israel Trek By: Jesse M. Fried, Paul A. Gompers, Scott Kominers and Mark C. Poznansky
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College.