Shapeholders

March 27, 2017
Business success is not just about the money anymore, says Kennedy, a former congressman and the president of the University of North Dakota, in this energetic guide to winning in the court of public opinion. Twenty years ago, he writes, business leaders only had to worry about shareholders, but in the more political current climate, there is a new group of influencers not financially beholden to the companies they seek to change. These titular “shapeholders”—activists, media outlets, politicians, and regulators—have been challenging companies to be more ecologically friendly, politically aware, and socially active. Thus, successful businesses must address a whole spectrum of voices, from the stakeholders who provide the capital and expect a return, to the shapeholders who provide the direction and expect a resulting change in behavior. In Kennedy’s view, Whole Foods has done it right, as has Google. He addresses managing the media, building credibility, working productively with politicians, and understanding regulators. It’s not easy, Kennedy cautions; you’ll need to stay on your toes, and stay connected. This is an easy, well-organized read, if a bit padded; it’s a thought-provoking, if not groundbreaking, way to frame the new responsibilities of the business world.

June 1, 2017

Kennedy's credentials include: president, University of North Dakota; senior vice president and treasurer, Macy's; member of the Council on Foreign Relations; member of Congress; and director, George Washington University's Graduate School of Political Management, all providing substantial background for his thoughts and reflections on shapeholders. Kennedy came up with this term and expanded the concept to include political, regulatory, and activist elements that interact to help determine the success of a firm. While shapeholders are different from stakeholders, they can have significant impact on a company's success or failure. Kennedy feels that today's businesses must realize that their bottom line is affected by many factors and that ignoring any of them can lead to diminished returns. Extensive notes are included. VERDICT Kennedy's efforts deserve consideration in determining business policy and strategy. Recommended for most business collections.--Littleton Maxwell, Robins Sch. of Business, Univ. of Richmond

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