Business Roundtable Replaces ‘Shareholder Value’ with Social Consciousness—i.e., Green Finance
Aug. 21, 2019 (EIRNS)—The Business Roundtable, leaders of 192 of the largest corporations in America, issued a new definition of the “purpose of a corporation,” ending, they claim, the single focus on “shareholder value”—that the primary function is to maximize profits for the stockholders. Instead, “Investing in employees, delivering value to customers, dealing ethically with suppliers and supporting outside communities are now at the forefront of American business goals,” claims these Good Samaritans.
Sounds good, right? But keep in mind that Deutsche Bank has for a long time asserted that they no longer put shareholder value über alles—which should be no surprise, since their shares no longer have any value! Perhaps J.P. Morgan’s Jamie Dimon (currently chairman of the Business Roundtable) and the others see the handwriting on the wall as the stock price bubble is heading for a crash.
But the truth is more sinister. The statement gives lip service to their intent to pay more attention to their workers and suppliers, but the kicker in their list of new priorities reads: “Supporting the communities in which we work. We respect the people in our communities and protect the environment by embracing sustainable practices across our businesses.” Ah, yes, sustainable green finance, the City of London’s frantic effort to divert funds from productive investments into a green bubble.
Other signers include Amazon’s Jeff Bezos, Apple’s Tim Cook, Bank of America’s Brian Moynihan, Dennis A. Muilenburg of Boeing, and GM’s Mary Barra. Larry Fink, CEO of the oh-so-humanitarian BlackRock, put it this way in his 2019 annual letter to shareholders: “Companies must demonstrate their commitment to the countries, regions, and communities where they operate, particularly on issues central to the world’s future prosperity. Fundamental economic changes and the failure of the U.S. government to provide lasting solutions has forced society to look to companies for guidance on social and economic issues, such as environmental safety and gender and racial equality.”