As Bangladesh stands on the threshold of its next phase of development, we face a critical decision: Whether to continue prioritizing profit above all or to embrace a more holistic approach that benefits all members of society.
This decision will define the future of our businesses, our communities, and our country. The path I’m advocating for is stakeholder capitalism -- a model where businesses are not only accountable to their shareholders but also to their employees, customers, suppliers, and the broader society.
The problem with shareholder capitalism
For decades, many businesses in Bangladesh and around the world have followed a shareholder-first model of capitalism, where profit maximization is the primary goal. While this approach has fueled rapid economic growth, it has often come at the expense of worker well-being, social equity, and environmental sustainability.
Low wages, long working hours, and poor working conditions have left many workers struggling, disconnected from social life, and with little hope of upward mobility. This model, where the focus remains solely on generating short-term profits, ignores the very people who keep businesses running.
The rise of stakeholder capitalism
Stakeholder capitalism offers a more sustainable and human-centred alternative. This model focuses on creating value for all stakeholders, not just shareholders. It recognizes that businesses must ensure the well-being of their employees, consider the impact of their operations on the environment, and contribute to the broader social good.
In stakeholder capitalism, success is measured not only by profit but also by how well a company treats its employees, protects the environment, and improves the community.
Bangladesh’s business community has a unique opportunity to adopt this model. By aligning with our cultural values of family and community, stakeholder capitalism could help address some of the challenges we face today, including income inequality, poor working conditions, and the increasing disconnect between work and life.
Worker well-being at the core
One of the key principles of stakeholder capitalism is ensuring the well-being of workers. In Bangladesh, where many workers endure harsh conditions for low pay, there is an urgent need for businesses to rethink their priorities.
By offering fair wages, ensuring safe working environments, and promoting work-life balance, businesses can foster a more motivated, productive, and loyal workforce. These measures are not just about doing what’s right -- they are also good for business.
Studies have shown that companies that invest in their employees experience higher productivity, lower turnover, and stronger financial performance in the long run.
By putting people at the centre of our economic model, Bangladesh can become a global leader in sustainable development
Why do it?
Beyond being the moral thing to do, stakeholder capitalism is an economic necessity. In a world that is rapidly changing due to technological advancements and global competition, businesses that fail to adapt will struggle to survive.
Companies that prioritize short-term profits at the expense of long-term sustainability will find themselves left behind. On the other hand, businesses that invest in their people, protect the environment, and engage with their communities will be better positioned to thrive in the future.
For Bangladesh, this means creating a more equitable and sustainable economy -- one that prioritizes innovation, human capital development, and environmental stewardship. Stakeholder capitalism can help build a more resilient economy that is less vulnerable to external shocks and better equipped to meet the challenges of the future.
A commitment to climate and society
Bangladesh is already grappling with the effects of climate change. From rising sea levels to extreme weather events, our country is at the frontline of this global crisis. Stakeholder capitalism demands that businesses take environmental responsibility seriously. This means reducing carbon emissions, investing in sustainable practices, and working towards greener solutions that protect our environment for future generations.
Additionally, businesses must recognize their social responsibility. This includes engaging with local communities, contributing to education and skill development, and ensuring that their operations do not harm the well-being of the society in which they operate. By doing so, businesses can play a vital role in shaping a more just and equitable society.
A call to decision-makers
As we envision a new Bangladesh, decision-makers have a crucial role to play. The leaders of Bangladesh 2.0 must embrace stakeholder capitalism if we are to build a future where economic growth benefits all members of society, not just a select few. Policy-makers must encourage businesses to adopt sustainable practices and create regulations that ensure accountability to all stakeholders.
For business leaders, it’s time to think beyond profit. Embracing stakeholder capitalism is not just about being ethical -- it’s about being forward-thinking. The businesses that will succeed in the future are those that recognize the importance of sustainability, equity, and long-term value creation.
The time has come to rethink our approach to capitalism. As we look toward the future, we must build an economy that works for everyone -- one that values human dignity, promotes social justice, and protects the environment.
By putting people at the centre of our economic model, Bangladesh can become a global leader in sustainable development. We have the cultural values, the human capital, and the potential to make this shift. The choice is ours to make, and the time to act is now.
Saad Hussain is a Human Capital Management and Organizational Development Specialist. Email: m.saad.hussain@gmail.com.