Full Disclosure: I rely on Capitalism and shareholder returns AND I abhor the movement to re-focus business exclusively on shareholder returns. Why?
For the bulk of my adult life, I made my living by founding and running my own professional service business. To plan for my future (which is now), I self-financed a portfolio of investments as my retirement strategy. My main income now comes from this investment portfolio. I rely on the ability of these businesses to be profitable. But I also want to safeguard my children (and yours) from the ever-increasing threats of pandemics, terror in our schools and grocery aisles, ever-growing socio-economic inequality, unremitting injustices against marginalized groups, geopolitical conflicts, and climate disasters. This requires massive collaboration, at all levels, to reach breakthroughs in scientific, social and economic innovation. Frankly, a better world where all people, businesses and communities thrive, now and across the generations cannot be realized without the reach and resources of business. But businesses must also prosper during that journey.
Fortunately, some of the most innovative businesses (small, medium and global) are succeeding at this BY using their strengths to solve ESG issues. And yet those businesses are under attack by people like State Senator Bryan Hughes (R- Texas). He is the author of what is being called “the fiduciary duty bill” – a bill that would prohibit public pension funds from investing in any corporation “with a purpose of furthering social, political” or other goals that deviate from maximizing short-term shareholder results.
Why do I bristle at such attacks? Given my dependence on shareholder returns, it seems to me I should applaud his work. And yet, I reject all those who are attacking businesses for pursuing strategies that create sustainable shareholder returns BY building a better world. These attacks are short-sighted and mean-spirited.
Short-term returns at the cost of a livable planet and a just society make no sense. Businesses need a world where the environment sustains us rather than threatens our very existence as a species, a world where together we overcome the pandemics, terror in our schools and grocery aisles, our socio-economic inequality and injustices, and our dangerous geopolitical conflicts.
Personally. I want to live and love in a world where ALL my neighbors experience justice, belonging, equity, and joy. Anything less is meanspirited and not worthy of the life I (and so many like me) have been given. And our children, mine and yours, need this world as well.
As paradoxical as it may sound to some, let us fight together for the right of business to go beyond focusing exclusively on short-term profit. Let us support those businesses that find ways to prosper by building a better world.