Denise Kuprionis analyzes Senator Warren’s proposal for federal charters of large corporations on the Conference Board corporate governance blog. She finds a number of its provisions are already covered or counterproductive.
Perhaps a better answer than the ACA is to better promote benefit corporations as an option for companies. Then to determine and highlight the accountabilities in that model – and perhaps incentivize with some form of tax break. And for those companies that don’t opt for the benefit corporation model, to better enforce the rules that are on the books today and to encourage good governance practices.
Bottom line, Sen. Warren’s proposition that we “need to end the harmful corporate obsession with maximizing shareholder returns at all costs” is true. However, most directors and managers understand the imperative of increasing long-term shareholder value, which means nurturing corporate culture and valuing the well-being of all employees. This formula translates into stronger customer and vendor relationships – which in turn creates better communities.