The Competitive Advantages of Stakeholder Mutuals

39 Pages Posted: 30 Oct 2000

See all articles by Shann Turnbull

Shann Turnbull

International Institute for Self-Governance; Sustainable Money Working Group; New Garden City Alliance

Date Written: September 20, 2000


This paper compares the competitive advantages of stakeholder mutual firms with firms that are publicly traded, family or government owned. A stakeholder mutual is owned and by its employees, customers and suppliers. These strategic stakeholders can have greater knowledge and commitment to the business than investors. The efficiency and effectiveness of competition for control between stakeholders is compared with competition for control through the stock market in making a firm a competitive. The empowerment of stakeholder constituencies to directly participate in corporate governance is identified as a means for reducing the need for detailed prescriptive government regulation to protect stakeholders. The operating advantages, the flexibility and the competitiveness of a stakeholder mutual is compared with government or private ownership. Examples are used to support the analysis that stakeholder governance can provide a superior approach for increasing efficiency and equity while creating a building block to develop a participatory stakeholder democracy.

JEL Classification: D890, G380, H190, K290, L200

Suggested Citation

Turnbull, Shann, The Competitive Advantages of Stakeholder Mutuals (September 20, 2000). Available at SSRN: or

Shann Turnbull (Contact Author)

International Institute for Self-Governance ( email )

PO Box 266 Woollahra
Cell: +61418222378
Sydney, New South Wales 1350
+61293278487 (Phone)
+61280655905 (Fax)

SKYPE: shann.turnbull

Sustainable Money Working Group ( email )

Holyoake House
Hanover Street
Manchester, M60 0AS
United Kingdom

New Garden City Alliance ( email )

113 Guinness Court
London, UK, SE1 3TA
United Kingdom
+44 207 378 1902 (Phone)


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