In Stakeholder Capitalism, Shareholders Are Still King – WSJ

[B]ig business in the U.S. is talking up stakeholder capitalism as it fends off growing criticism of its place in society. Most prominently, in August, the Business Roundtable released a statement signed by 181 CEOs in which they pledged “a fundamental commitment” to “deliver value to all” stakeholders. For some people, this renewed interest in…

Prudential’s multi-stakeholder framework reinforces board commitment to investors, employees, customers and society

The Board of Directors for Prudential Financial, Inc. (NYSE: PRU) has introduced a multi-stakeholder framework that extends the board’s accountability to shareholders, employees, customers and society. “As board members, we believe our duty includes enabling positive change for a much broader set of individuals, groups and interests, in addition to creating strong value for shareholders,”…

Performance Metrics: Accelerating the Stakeholder Model

When the Business Roundtable announced their “new” commitment to “stakeholders,” we said it was not meaningful unless we saw incentive compensation aligned to specific stakeholder goals. At the Harvard Law School Forum on Corporate Governance and Financial Regulation, Equilar research analyst Connor Doyle looks at current incentive plans tied to goals other than the traditional…

Interview With Ira Millstein — WSJ

One of the founding fathers and true visionaries of modern corporate governance is Ira Millstein. The WSJ asked him for his thoughts on the BRT’s stakeholder statement (he says it is not specific enough) and on the state of corporate governance today. An excerpt: In 1979, the Business Roundtable conducted a series of hearings and…

Capitalism Is a Blessing — IQ2US Debates

The IQ Squared Debate series has experts debate today’s the most complex and hotly contested topics. Coming: Is what we get from capitalism worth what we pay for it? We will post a recording of the debate as soon as it is available. Recent polls show that two out of three Americans support capitalism. But…

Not Everything is About Investors: The Case for Mandatory Stakeholder Disclosure by Ann Lipton :: SSRN

his Article recommends that we explicitly acknowledge the importance of disclosure for noninvestor audiences, and discuss the feasibility of designing a disclosure system geared to their interests. In so doing, this Article excavates the historical pedigree of proposals for stakeholder-oriented disclosure. Both in the Progressive Era, and again during the 1970s, efforts to create generalized…

Corporate Leaders Speak Out Against the Muslim Ban

Corporate leaders have spoken out on gun safety and emissions standards, and now call on the government to put an end to the restrictions on Muslim immigration. The most striking sentence in the letter: “Nearly half of the top 100 companies on the Fortune 500 list were started by an immigrant or their children.” Global…