Karen’s piece on the “stakeholder” philosophy of Whole Foods CEO and founder John Mackey has provoked some responses on the Free Liberal web site. My own view on the issue is as long as Mackey is upfront with his investors that some of their money will be spent to benefit “stakeholders” there is nothing wrong with Mackey using his business to advance his social vision. Chicago economists may chastise Mackey for violating their notion of “efficiency” but Austrians know that the fact that Mackey is able to attract people who view investing in Mackey’s business as the best (or at least superior to other possible uses) of their money shows that investing in Mackey’s business is efficient.

It is also important to keep in mind that Whole Foods caters to the type of upper-income “Volvo liberals” who like to shop at “socially conscious” stores. Thus Mackey “stakeholder” philosophy fits in with his market niche. Personally, I like Whole Foods because they give free samples of beer and wine!