Justification for transition to a multi-stakeholder business-model

The article analyzed and identified critical shortcomings of the agency model of doing business and identified the main shortcomings of the modern form of capitalism. Based on the shortcomings discussed, there is evidence of an objective need to move to a multi-stakeholder model in the business process to achieve a strategic competitive advantage in an unpredictable and dynamic business environment. The analysis is based on the judgements of Joseph Bauer and Lynn Payne about the agency model in an article published in the Harvard Business Review (September 5, 2017). The result of the study is the disclosure of the relationship between the two models and corporate, functional and business strategies, and relationship to economic result.