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Sustainability:Shareholders Versus Stakeholders
Earlier there was a big battle, Kraft Heinz wanted to take over Unilever, and it was a battle of the systems. Kraft Heinz, the US food company, represents the shareholder model, aiming at short-term profits. By contrast Unilever represents the stakeholder model, looking beyond the financial return also at social and environmental dimensions. So, it was a big battle between the two. What happened? Kraft Heinz offered a large amount of money, but Unilever refused, they did not want to give up their sustainable business model. In the end they were saved by Warren Buffett. He saved the day for them because Warren Buffett, the face of American capitalism, does not believe in hostile takeover. So, the bidding stopped when Unilever said no. But what was happening, a clash of models in finance.