Five myths about shareholders — Christopher Marquis

Cornell professor Christopher Marquis writes this week’s “Five Myths” column in The Washington Post. We don’t agree with all of his points; most important, we believe that there is no trade-off of profitability in managing risk by incorporating sustainability concerns, and we note that most American workers are “small shareholders” via retirement plans, 401(k)s, or…

Shareholders Are Not the Problem

Susan Holmberg has a sincere, thoughtful, but occasionally misguided new paper, Economic Inclusion, Finance, and Wealth. The ideology of “shareholder primacy”—the belief that businesses function solely to profit and “maximize value” for shareholders—has had a profound and toxic effect on our economy. Corporate executives used to, in large part, manage companies for the long term,…