CEOs’ focus on diversity and sustainability is enough to worry about high failure and running complex businesses in a challenging environment without having to deal with politicians who attack them as “active CEOs.” Chance Conference in Florida this week
That so-called “stakeholder capitalism,” where corporations focus on doing good, was the focus of the panel. ChanceWednesday in Palm Beach, Fla. CEO Initiative meeting. The state’s governor, Ron DeSantis, has repeatedly taken aim at bosses who want to hit ESG (environmental, social and governance) goals. In some states, politicians have gone so far as to ban investments in ESG-focused companies with government funds.
The CEOs at the conference, however, said that stakeholder capitalism only demonstrates the potential of capitalism to revitalize itself and ensure its future. Moreover, in this day and age, aligning with the expectations of employees, investors, and other stakeholders from companies is a matter of talent attraction.
“It’s important to listen to them (employees and other stakeholders) and understand their expectations, because they really want to make the company they want to work for better, to make an impact on the environment and the communities they’re in. Getting involved,” said Chano Fernandez, co-CEO of Workday. There is a strong correlation between purpose and stakeholder capitalism and good business.”
Schnitzer Steel Industries CEO Tamara Lundgren said there is “nothing new” in the basic idea of stakeholder capitalism, and many companies have long understood that doing well by their employees and the community as a whole is good for business. But to remain at the forefront of corporate priorities. “The principles of those companies that have survived over time are based on authenticity and things that are relevant to your stakeholders, and are judgmental about what you do, and don’t try to be everything to everyone,” she said.
According to Penny Pennington of Edward Jones Management, the first thing prospective employees look for when looking at job offers is the financial institution’s annual impact report. At the same time, according to Pennington, instead of trying to solve all social problems, it was important for a company to focus on the social problem or issue and focus on the people who are directly related to the business. In the case of Edward Jones, Pennington says it’s financial security and wealth inequality.
“So financial security is our line. And if we’re long-term in our view, that means access to equity and financial education and advice is central to our long-term outlook. So it is important. Social activism should matter to us,” Pennington said.
As for Moynihan, he said anything the bank does will draw critics. Bank of America invests in fossil fuel companies, but also invests in renewable energy companies, he cited as an example. Ultimately, Moynihan said, capitalism must be flexible enough to respond to contemporary societal concerns — critics call it the best economic system ever invented, to survive on CEOs, and the panelists.
“If we don’t do that, we could lose,” Moynihan said. “Capitalism works. It can be a screwball, it can be hard, and it can go in all directions, but it works.”
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