Corporate politicization appears to be growing as CEO’s attempt to virtue signal to increase market share, avoid reputational damage, secure contracts, grants, and subsidies from political entities, or simply enhance their personal reputation.
However, it appears that another dangerous trend is developing. Allowing unaffiliated third parties known as "stakeholders" to influence corporate decisions involving facility location, financing, advertising and marketing, and charitable giving.
The danger lies in corrupting legal fiduciary duties that inure to the benefit of shareholders, including minority shareholders and non-control investors. All of whom have a reasonable expectation that enterprise executives will maximize value for the corporation over other unaffiliated interests and pay off their obligations to investors and vendors.
Beyond the fiduciary responsibilities to shareholders, investors, and vendors, comes the responsibilities to customers, users, and employees whose wages should be acceptable to the individuals who volunteer to accept them for services rendered. Hopefully, such wages and benefits meet or exceed industry norms for the company's location.
It is in the company's best interest to support a vibrant community, primarily through paying increasing taxes that follow increasing profits. To the extent that a company participates in community activities to generate goodwill, it should be on a non-partisan basis divorced from politics.
It is in the company's best interests to support their unions only on matters of safety and correlating increases in wage and benefits to increases in production and efficiency.
And, it certainly is not in the company's interests to engage with radical activists or agitators that polarize individuals and that lead to discord and dissention as they fight to determine how to allocate funds they did not earn and may not deserve.
Some members of the Business Roundtable are suggesting that companies should "redefine the purpose of a corporation to promote ‘an economy that serves all Americans.’ An updated statement that moves away from shareholder primacy and includes a commitment to all stakeholders."
My suggestion is that all contributions be reserved and spent locally for schools, charitable works in the community. To participate in national charities might I suggest non-controversial charities like Ronald McDonald House or Fisher House which extend support to families with children or soldiers receiving medical care.
Avoid Buffy the Woke Stakeholder and Corporation Slayer.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?