Here is an argument to say why New Labour should embrace what is seen as the "New Capitalism". I can't get into the author's comment box, so I give my response below.
Ideas That Were "New" In the Olden Days
The dubious notion that capitalism is changing its spots under the influence of more people having a stake in pension funds, life insurance policies and other investments is hardly new. In this country, Tony Crosland and others started to peddle the idea as soon as the dust started to settle on the 1945-51 Labour Government's reforms.
Unfortunately, pension funds have been collapsing left-right-and-centre recently and are a poor example of how the "New Capitalism" has started to transform us all into stakeholders. Moves to protect such funds will hardly put their members in the driving seat over free market operations. This is because capitalism belongs to capitalists. It belongs to those with serious wealth, who use it to advance the size of their own portfolios and dominate what their Boards get up to. They don't need majority ownership to be able to override the isolated views of those whose biggest stake isn't their investments, but what they get from their paid employment.
Even the argument that capitalists (old and new) have a vested interest in being nice to their workers, was being propounded by Robert Owen as part of his theory of "the economy of high wages" back in the 1817. However, after bashing his head against this brick wall he moved on to the notion that worker's should unite and act collectively in their own interests via Trades Union and Producer Co-operatives.
Socialism's Contemporary Relevance
Of course, we have to regulate, restrain and attempt to influence how capitalism functions in today's world - a task made more difficult by its globalised nature in many of the areas which really matter. Advances to any socialist alternatives have, of course, to beware of bureaucratic abuses. In Britain ,thinkers such as GDH Cole had pointed this out from 1917.
But just as socialism is lost without democracy, so is democracy only a shadow of what it could be without socialism. We should at least start talking to people about the need to turn the ship round in order to start even a gradualist move to democratic socialism. If we don't start acting upon co-operative, egalitarian and democratic principles; then we will continue down the road to an even more miserable world. There is modernisation for you.
But How Do We Get To A Socialist Perspective?
Try this for size - Part 1, Part 2 and Part 3.