The BRT’s Fake Stakeholder Promise: One Year In

A year from the Business Roundtable’s announcement that they were broadening their focus on stakeholders, what are the results? Unsurprisingly, the BRT gives itself an A. Executive Director Joshua Bolten writes in the Wall Street Journal: The CEOs who signed the new statement believe it better reflects their conviction that businesses can’t flourish over the…

‘Stakeholder’ Capitalism Seems Mostly for Show – WSJ

We said as soon as they accounted it that we did not believe the Business Roundtable’s new claims of commitment to stakeholders. Now Lucian Bebchuk and Roberto Tallarita confirm that we were right to be skeptical. By putting American workers through months of turmoil, the Covid-19 crisis has heightened expectations that large companies will serve…

Preparing for Post-Pandemic Corporate Activism

Pre-pandemic, activists found new acceptance among institutional investors as they focused on unlocking value, creating efficiencies, and operating in a global environment with a focus on corporate and social responsibility governance issues. In what might be seen as a direct response to this trend, in August 2019, a group of 181 chief executives signed a…

Investors Call on Corporate Managers to Adopt COVID-19 Policies

From the Interfaith Center on Corporate Responsibility: We are 195 long-term institutional investors representing over $4.7 trillion USD in assets under management with global exposure across capital markets. We recognize the long-term viability of the companies in which we invest is inextricably tied to the welfare of their stakeholders, including their employees, suppliers, customers and…

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,”…