Pratt was then followed by Peter Brokensha who claimed that he had a mountain of evidence to show that companies with a stakeholder mentality, ie., socially responsible, were the most profitable. Of course not. It is because they are profitable that they can, for example, support various charities, or should I say try to buy public acceptance. If politicians are stupid enough, and many are, to adopt this concept the result would be to politicise all business decisions and paralyse the market process. Think for a moment.
Technical progress involves obsolescence and replacement.
New industries are given birth by new technologies. What Schumpeter unforgettably called creative destruction . Kay s idea would paralyse that process. The result was that valve manufacturers were virtually wiped out. Yet according to Kay and his supporters these valve manufacturers, their employees and suppliers et al were obviously major stakeholders in the electronics industry and therefore should have had a major say in future developments.