Christopher Marquis at Project Syndicate:
In 2019, the Business Roundtable, an association of the United States’ most powerful CEOs, won widespread praise by announcing its commitment to “stakeholder capitalism,” which delivers value not only to shareholders, but also to other affected actors, such as employees and communities. Now, however, the Business Roundtable has changed its tune: its April report, “The Need for Bold Proxy Process Reforms,” reads almost like a manifesto against stakeholder capitalism.
The reason for this volte-face is obvious. The Roundtable’s 2019 “commitment” was a clear attempt to get on the right side of popular sentiment: engagement with social and environmental issues was up, and so were demands that powerful institutions get on board. But the political mood has changed. At a time when Americans are preoccupied with intensifying pressures on their own pocketbooks, US President Donald Trump’s second administration is actively rejecting environmental and social issues. For many CEOs, this looks like a golden opportunity.
More here.
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