I identify two very different types of debt:
- towards human creditors, or
- towards natural or social phenomena.
Debt towards human creditors is the most visible form of debt. It is recorded in public or private accounts, and is the purpose of active monitoring, in order to ensure that the debtor keeps a sustainable capacity to pay the creditor back. The rights of creditors are defended by national and international law.
However, debt towards humans is not as hard as what could appear prima facie.
Continue reading “Debt towards humans, or towards natural / social phenomena? Classical accounting gives the wrong answer”
Source of data in the image: World Bank, stocks traded, turnover ratio of traded shares.
When asked about who should govern companies, the most obvious answer seems to be: the shareholders. And the reason: because they are the owners. Period. Debate closed. Recent discussions about the increased role of other stakeholders, be they the workers, representatives of external interests such as those of the environment or of suppliers, are seen like nice add-ons, little more than an inflexion to a generally valid rule.
I disagree, and believe that the role of the shareholders in the governance of companies should be radically reconsidered.
Continue reading “The shareholders aren’t any more the most legitimate to govern companies”