This, seemingly bold, statement helps shareholders by taking a page out of the non-profit hospital playbook where appealing to an amorphous "social mission" has allowed hospitals to foil regulators, acquire their competition, and increase market power
A coalition of executives representing some of America’s largest companies said a company's responsibilities go beyond the shareholder and that companies must also invest in employees, deliver value to customers and deal fairly and ethically with suppliers
Voluntary pledges didn’t end child labor, sweatshops, 18-hour workdays, elderly penury, noxious air, poisoned rivers, toxic financial products or much besides. Why do we trust them to end an age of corporate greed and vast inequity?
Now they’ll love you guys. Ironically this is done in the pure pursuit of profits as these corporations have decided “woke sells” and non-woke is doom because of a few angry people on Twitter. Here, this will help you guys (not):
Shareholder Value Is No Longer Everything, Top C.E.O.s Say - The New York Times
This is a big repudiation of a lot of 80s economic thinking that led to so much short-term thinking and upside-down executive pay structures. (The cynic in me says this is an attempt at self-regulation before a Warren or Sanders does it for them)
This is big very big...Shareholder Value Is No Longer Everything, Top C.E.O.s , Chief executives from the Business Roundtable, including the leaders of Apple and JPMorgan, argued that companies must also invest in employees and deliver value to customers.
“The ideology of shareholder primacy has contributed to the economic inequality we see today in America.” #impinv #ESG
in 1992 i interviewed for a job w/a top asset manager. i mentioned ethical investing in companies that did good for stakeholders. i did not get the job. changing the bylaws of a corp. is the only way. who will be the first CEO to push for such a change?
The Business Round Table CBRT corporate leaders said businesses should no longer advance only the interests of shareholders., companies must invest in their employees, protect the environment and deal fairly and ethically with th…
In a historic change, America's top CEOs reject the idea that companies exist primarily to serve shareholders. Instead, companies must also invest in employees and communities.
This is HUGE! And it speaks to my Community Health and Economic Prosperity (CHEP) initiative. Must think about health / success of all stakeholders as opposed to just shareholders. => Shareholder Value Is No Longer Everything, Top C.E.O.s Say
CEOs of billion-dollar companies say they want to invest in their workers and communities. Good. I have a few ideas for them: ✅ Provide a living wage of at least $15 an hour ✅ Stop union-busting and outsourcing jobs ✅ Pay your taxes, don't evade them
New rhetoric from corporate America. Will action follow? CEOs could start by cutting their own pay and raising salaries for their lowest paid workers via ⁦⁩ #csr
Shareholder Value Is No Longer Everything, Top C.E.O.s Say “The threshold has moved substantially for what people expect from a company. It’s more than just producing profits for the shareholders.”
The idea of shareholder primacy has contributed to the economic #inequality we see today in America. 181 CEOs took the first step toward shifting this mindset. Here's how: TY for this great piece.
If these corporations lean in now and lobby hard for climate solutions, we stand a fighting chance. Get to it and show us you’re serious. via ⁩ ⁦⁩ ⁦⁩ ⁦
The new statement of purpose by top American CEOs: to “invest in their employees, protect the environment and deal fairly and ethically with their suppliers”. I see many on Twitter calling the statement disingenuous. 1/n
via ⁦⁩ ⁦This builds on many efforts led by ⁦⁩ ⁦⁩ ⁦⁩ over the decade. Greater attn to dirty legacy industries (coal, tobacco, cars) is needed & ⁩ supports such work.
There has long been a debate of whether "fiduciary duty" means maximizing shareholder profits, specifically. Few corporations seemed even to wonder which side to take on that. I'm skeptical, but would be good if this amounted to anything.
This is not complicated NYT. The morality of profit-maximization was explained by Adam Smith in 1776. "It is not from the benevolence of ... the brewer, or the baker, that we expect our dinner, but from their regard to their own interest."
We’ve know this, and I’ve felt this way, for a while. But it’s a big deal to see as esteemed a group as The Business Roundtable declare it.
This is bizarre. What was discussed at the meeting, that persuaded all the companies to agree on this monumental change, all at once?
Some of the richest CEOs of the most unethical corporations: , , have signed a pledge to "invest in their employees, deliver value to their customers, and deal fairly & ethically with suppliers." Amusing.
Wild! And makes me sad I'm not teaching Econ Soc or Orgs this term, as this would be a perfect discussion topic!
Doesn't it seem that this could have been the title of an article? But no, it's from the New York Times Business section. .
The statement "was an explicit rebuke of the notion that the role of the corporation is to maximize profits at all costs — the philosophy that has held sway on Wall Street and in the boardroom for 50 years."
2/ Corporate magnanimity and voluntary virtue are not going to solve these problems.
An important step in the renewal of values - CEOs recognizing the need to move beyond shareholders and consider all shareholders.
SMDH, as the kids say. | "Instead, the group said, they must also invest in their employees, protect the environment and deal fairly and ethically with their suppliers." Shareholder Value Is No Longer Everything, Top C.E.O.s Say
GOTDANG it, gotta update the lecture. Shareholder Value Is No Longer Everything, Top C.E.O.s Say
This is great news! Exactly the direction of movement in the self-conception of business elites we need more of
Invest in employees and deliver great product sounds like a formula for increasing shareholder value.