The Big Lie of Woke Capitalism

 My latest on American Thinker:

"There are at least three terms to describe the concept of stakeholder capitalism -- corporate wokeness, woke corporatism and woke capitalism. The last of the three was coined in 2015 by Ross Douthat when writing a piece for the New York Times. He defined it as how companies signal their support for progressive causes in order to maintain their influence in society. Since then the concept has become very popular in the U.S. and worldwide, corporations have gone political and seek, or at least profess to seek, change in the world.

On January 24, for one thing, former Unilever CEO Paul Polman wrote in a piece for the Financial Times that “Today, staff and customers believe you should... speak out on big, touchstone issues, from race to fake news and climate change.” In a historic moment of multiple and converging global challenges, he thinks, we have no other option but to embrace so-called stakeholder capitalism. After all, evidence is stacking up to show the “financial benefits to companies that consistently apply their principles and actively work to solve societal problems,” he argues. “Not everyone agrees, however,” he sadly but honestly acknowledges. In fact, if there is a big support for stakeholder capitalism among corporations, there’s also been a backlash from conservative voices, as we will see below. But let us dwell a little more on the supporters of stakeholder capitalism.

In his annual letter to BlackRock shareholders a few days ago, CEO Larry Fink argued that expectations of business leaders have changed dramatically in the last few years. Increased profits, happy shareholders, and more jobs are no longer what a chief executive is expected to deliver. For instance, most stakeholders -- from shareholders, to employees, to customers, to communities, and regulators -- “now expect companies to play a role in decarbonizing the global economy.” And “few things will impact capital allocation decisions -- and thereby the long-term value of your company -- more than how effectively you navigate the global energy transition in the years ahead.” This illustrates perfectly what stakeholder capitalism -- the new mantra of the Business Round Table as announced in August 2019 and endorsed by almost 200 CEOs of the largest corporations -- is all about..."

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