This archive report was first published on 21 August 2019.
On August 21, 2019, a group of C.E.O.s from major American corporations made headlines with a statement vowing to prioritize the greater good over shareholder interests. However, their empty gesture has left many questioning their sincerity.
Imagine a co-worker who has been stealing your lunch from the office fridge for years, only to announce that they will now try to be aware of the wider consequences of their actions. While they may feel a tinge of guilt, their true intentions remain unchanged.
The C.E.O.s' statement lacks any call for greater structural changes in the American economy, such as changes to how companies are taxed or regulated, or how executives are paid. As a result, there's no reason to believe that corporations will voluntarily move away from pleasing shareholders alone.
Instead, the fanfare surrounding the statement could be seen as an effort to stave off structural economic reform rather than accelerate it. It's a way for the C.E.O.s to tell us that they're on the case, so we don't have to resort to something unthinkable, like a Warren presidency.
As we navigate the Trump era, it's essential to remember that America's C.E.O.s are skilled at talking out of both sides of their mouths. They'll issue virtue-signaling denunciations of the latest outrage from President Trump, while championing his tax cuts and regulatory dismantling.
It's all a game to the moguls in charge, and their greatest fear is that we'll stop playing. A recession, however, could be the catalyst for real change, and it's time for C.E.O.s to start fearing the consequences of their actions.
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