In August 2019 more than 180 CEOs, representing some of America’s largest corporations, released a groundbreaking statement. They acknowledged that companies could no longer focus on serving shareholders at the expense of other stakeholders. The announcement was widely covered and seemed to signal a new era for business, one where the interests of employees, the environment, suppliers, and communities would be taken into more serious account.
Brian Stauffer
Power Sharing Can Change Corporations for the Better
Strategies for ensuring stakeholder voices are heard and ESG goals are met.
May 13, 2021
· Long read
Summary.
Corporate leaders say they want to serve all of society: investors, customers, employees, and communities. But good intentions and positive statements can’t create real change until power — defined as the ability to control valued resources, such as executive hiring, compensation, and a company’s list of priorities in the face of an economic or health crisis — is shared more broadly. To accomplish this, two fundamental shifts need to occur: Boards must be revamped to give employees and stakeholders more decision-making power, and corporations need to be held accountable not only for their financial performance but also for their social and environmental impacts. Until power is shared more broadly, it is unlikely that society will make progress on issues such as inequality and climate change. And when things get worse in these areas, everyone — even the powerful — will suffer.