Americans are losing faith in capitalism. The problem isn’t capitalism

The problem isn't capitalism itself, but rather the lack of know-how in creating value for all stakeholders involved. A recent Gallup tracking data reveals that positive views of capitalism have hit a 15-year low, dropping to 54%. This decline reflects a zero-sum perspective of corporations, which often view value creation as an extraction process rather than a creation process.

However, over 200 CEOs interviewed through Yale's Program on Stakeholder Innovation and Management reject this view, believing that creating value for customers, employees, partners, and communities is essential to long-term shareholder value. The challenge lies in implementing this "design thinking" approach at scale, as many CEOs struggle with how to achieve it.

Three examples showcase effective know-how in practice: Walmart's Doug McMillon designed the company around interdependent elements like e-commerce and technology, resulting in a $1 trillion market valuation. Starbucks' Brian Niccol restored customer-facing amenities, simplified operations, and invested in labor, leading to consecutive quarters of comparable-sales growth and increased share value.

Lastly, Rio Tinto's new CEO, Jakob Stausholm, rebuilt trust by investing in community engagement and cultural-heritage expertise, generating a 66% total shareholder return. Ultimately, the key to successful value creation lies in designing businesses that benefit all stakeholders, rather than relying on declarations of intent.