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Asia's stakeholder capitalism can help beat pandemic: Davos chief

Schwab says companies need to put people ahead of short-term profits to heal society

“Asia may be philosophically more prepared for the stakeholder concept than the West," says the World Economic Forum founder and chairman Klaus Schwab. (Photo courtesy of WEF)

TOKYO -- The ability of Asian companies to balance the needs of both shareholders and stakeholders will help the region recover from the novel coronavirus pandemic, the founder of the World Economic Forum says.

Klaus Schwab, who established the WEF and hosts its renowned Davos annual meeting, has long promoted stakeholder theory. He believes that companies in their guise as "social organisms" are required to make contributions to society during the crisis, instead of aiming for "irresponsible" short-term profit to benefit their own shareholders.

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