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Stakeholder Capitalism Metrics and the Fashion Industry

Stakeholder Capitalism Metrics (SCM) is a set of metrics and analytical tools used to measure the effectiveness of a company's commitment to stakeholder capitalism principles. This includes indicators such as employee engagement, environmental impact, customer satisfaction, equal opportunity and diversity, corporate social responsibility, and long-term value creation.

Stakeholder Capitalism Metrics (SCM) was first proposed by Klaus Schwab, founder and executive chairman of the World Economic Forum, in his 2019 book ‘Stakeholder Capitalism: A Global Economy that Works for Progress, People and Planet’.

Stakeholder Capitalism Metrics are currently being used by corporations to measure their performance in regards to stakeholder capitalism principles and to track their progress over time. This helps companies identify areas for improvement and ensure that their actions are in line with their commitments to making a positive difference in their communities.The way forward for Stakeholder Capitalism Metrics is to continue to develop and expand them, incorporating additional indicators that encompass other aspects of stakeholder capitalism principles. Companies must also strive to use the metrics to continually improve their operations and create meaningful change in the communities they operate in. Additionally, companies should invest in data collection and analysis to ensure the accuracy of the metrics and allow for the most effective decision-making.

The key challenges for Stakeholder Capitalism Metrics are data collection and analysis. Accurate data is essential for the metrics to provide valuable insights into a company's performance, but this can be difficult to obtain due to the lack of available information or the difficulty of measuring certain metrics. Additionally, organizations need to invest in the practices and processes required for data analysis and interpretation.

A number of major companies are currently using Stakeholder Capitalism Metrics, such as Microsoft, Amazon, Unilever, Apple, and Walmart. These companies have adopted stakeholder capitalism principles and are using SCM to track their progress in regards to important social issues. Additionally, some smaller companies are also beginning to use the metrics as a way to demonstrate their commitment to investing in sustainability and creating positive change.

Stakeholder Capitalism Metrics has been adapted to the fashion industry as a way to measure corporate responsibility in regards to environmental protection and social responsibility. Companies are using metrics such as waste management, energy efficiency, carbon emissions, labor practices, and transparency to assess their progress towards sustainability goals. Additionally, data gathered from the metrics is used to inform product design, materials sourcing, operational processes, and corporate strategy.

Some fashion companies using Stakeholder Capitalism Metrics include Zara, H&M, Nike, Adidas, Levi Strauss & Co., and Gap Inc. These companies are all committed to sustainability initiatives. They are using the metrics to track their progress towards these goals. Additionally, these companies have incorporated data from the metrics into their product offerings and operations to create long-term value for all stakeholders.

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