Media Mention

The Proxy Voting War Is One That The Right Needs to Engage In

Politico called this a “watershed moment for activists.”
Media Mention

This Is No Time to Go Wobbly on Capitalism

There’s an important debate happening in America right now, a competition among three distinct views of the world. The first view is held by those who think capitalism is the best and fairest economic system the world has ever seen. The second is held by those who think socialism is the answer to a host of problems from climate change to inequality. Then there are those who are pushing a…
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The Hidden Dangers of the Great Index Fund Takeover

If you hold a stock market index fund, congratulations. The S&P 500’s total return was a thumping 31.5% in 2019, and a fund that passively tracks that benchmark delivered almost all those gains, minus a tiny fee—perhaps just 0.04% of assets. Now here’s something you probably weren’t thinking about when you clicked on the box to choose an index fund in your 401(k) or IRA: You were also part…
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‘Stakeholder’ Capitalism in Action

Pacific Gas and Electric Co. is getting incinerated by California politicians for shutting off power to two million residents amid heavy, dry winds. The publicly traded San Francisco-based utility has been found responsible for two dozen or so wildfires since 2016, some caused by power lines sagging from steel towers more than a century old. The purpose of the blackouts was to avoid more damage from an aging grid that…
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Business Roundtable becomes one bloated bullseye

King Arthur set up his legendary roundtable in a circle to show his comrades they were at a table of equals. Breaking from the mold of an all-powerful king with subjugated servants, there was no “head” of the roundtable. Last week, the CEOs that make up the Business Roundtable made a similar decree that all corporate stakeholders now are considered equal. The ramifications are profoundly disturbing. The…
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Shareholder Value Is No Longer Everything, Top C.E.O.s Say

By David Gelles and David Yaffe-Bellany Nearly 200 chief executives, including the leaders of Apple, Pepsi and Walmart, tried on Monday to redefine the role of business in society — and how companies are perceived by an increasingly skeptical public. Breaking with decades of long-held corporate orthodoxy, the Business Roundtable issued a statement on “the purpose of a corporation,” arguing that companies should no longer advance only…
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Move Over, Shareholders: Top CEOs Say Companies Have Obligations to Society

By David Benoit The leaders of some of America’s biggest companies are chipping away at the long-held notion that corporate decision-making should revolve around what is best for shareholders. The Business Roundtable on Monday changed its statement of “the purpose of a corporation.” No longer should decisions be based solely on whether they will yield higher profits for shareholders, the group said. Rather, corporate leaders should take into account “all…
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BlackRock’s Larry Fink Wants to Become the Next Warren Buffett

By Sarah Krouse BlackRock Inc. is looking to raise more than $10 billion that it would use to buy and hold stakes in companies, replicating the approach of Warren Buffett’s Berkshire Hathaway Inc. It is the first-ever attempt by the world’s largest asset manager to make such direct investments, according to people familiar with the matter. The move establishes BlackRock as a potential competitor to Wall Street private-equity giants like Carlyle Group LP…
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BlackRock’s Message: Contribute to Society, or Risk Losing Our Support

By Andrew Ross Sorkin On Tuesday, the chief executives of the world’s largest public companies will be receiving a letter from one of the most influential investors in the world. And what it says is likely to cause a firestorm in the corner offices of companies everywhere and a debate over social responsibility that stretches from Wall Street to Washington. Laurence D. Fink, founder and chief…
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Using ‘Disclosure’ to Silence Corporate America

By Jonathan Macey Many American businesses are mulling the latest results of the annual “CPA-Zicklin Index,” which purports to use empirical methods to measure the accountability and transparency of spending by publicly held companies. The index is a joint project of the George Soros-backed Center for Political Accountability and the Zicklin Center for Business Ethics Research at the Wharton School of the University of Pennsylvania. A word to company officers…