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The GameStop Saga Explained -- The Free Market Isn't Free

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The GameStop Saga Explained -- The Free Market Isn't Free
The GameStop Saga Unravels Stakeholder Theory
The GameStop saga shows some "equity" movements are more equal than others.

Stakeholder theory, the corporate version of social justice, attempts to install this hopelessly amorphous concept of "equity" in the business world. Equity, unlike equality, demands different treatment of individuals and different distribution of resources based on need, identity, and historical injustices. But now equity has evolved beyond a political buzzword, and finds growing support in calls for stakeholder capitalism. The animating impulse in big corporate boardrooms today requires cultivating an image of social responsibility. Under this theory business firms should entertain all kinds of noneconomic goals and outcomes. No longer may owners simply concern themselves with profit or loss, but instead must consider the broader societal implications of everything their business does. Whether corporate leaders concern themselves with social justice out of genuine desire or merely to avoid backlash is an open question, but the events of 2020 clearly changed the conversations in boardrooms.




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