Woke capitalism does not improve business practice and can be divisive

In recent years stakeholder theory has changed slowly into woke capitalism. But woke capitalism is not about companies fulfilling their mission or maximizing shareholder value. It is about promoting a particular social agenda.

Instead of seeing each employee or job candidate as a unique individual with specific talents and skills, it groups them based on race, gender or sexual orientation. But in my opinion, no one is less qualified for a job because of their race, gender or orientation but the opposite is also true: No one is more qualified for a job because of their race, gender or orientation.

When companies announce that they are changing their hiring and advancement policies to increase their diversity scores, it is not about fair or equal treatment. It is about preferential treatment. This preferential treatment creates hard feelings in other groups. Today’s hypersensitive workplaces, expressing dissent on woke policies can leave employees being accused of ignorance or a closed mindset. This can lead to even more frustration and resentment.

In theory the most qualified applicant should get the job or the promotion, regardless of race, gender or orientation. This is very different from saying that the most qualified person of a certain race, gender or orientation should get the job.

I would want to get the job because I am considered the best candidate for it and not because I am belonging to a certain race or gender.

Stakeholder theory is about improving business practices to make companies more productive, more inclusive and more profitable. Woke capitalism makes a similar claim but instead makes businesses less productive, less harmonious and more divisive. And it does not lead to happier people.

Sven Franssen