Skip to content

15 May, 2025

  • Saved Articles
  • My Account
  • Subscribe
  • Log In
  • Log Out

Board Agenda

  • Governance
  • Strategy
  • Risk
  • Ethics
  • News
  • Insight
    • Categories

      • View all
      • Governance
      • Strategy
      • Risk
      • Ethics
      • Board Expertise
      • finance
      • Technology
    • leadership on AI

      How to get ahead on AI leadership

      The question isn’t how AI will change business—it’s whether leaders can harness it to drive...

    • canada tariffs

      Corporate governance to the fore in Canada

      As Canada responds to the tariff conditions set by the US, companies need to take...

    • AI will transform

      4 ways AI will transform board dynamics

      Opportunities and challenges are arising from the integration of artificial intelligence into corporate governance.

  • Comment
      • View all
    • leadership on AI

      How to get ahead on AI leadership

      The question isn’t how AI will change business—it’s whether leaders can harness it to drive...

    • canada tariffs Corporate governance to the fore in Canada

      As Canada responds to the tariff conditions set by the US, companies need to take...

    • meritocracy Fairness makes for meritocracy

      Favouring actions over persuasion, boards can take small yet extremely effective steps to improve diversity,...

  • Interviews
      • View All Interviews
      • Podcasts
      • Webinars
    • financial sanctions Tariffs chaos drives boardroom focus on resilience

      Business leaders will prioritise the resilience of their organisations in the face of economic upheaval...

    • ai boards Corporate world has a ‘huge appetite’ for artificial intelligence

      AI could change boardrooms to the extent that directors’ duties would change too, a panel...

    • EU non-financial reporting reforms are an ‘opportunity’

      Firms can take advantage of the delayed implementation of CSRD and CSDDD to take stock...

  • Career
  • Resource Centre
      • White Paper Downloads
      • Book Reviews
      • Board & Governance Services
    • Director Reference Guide: Fostering the board-CEO relationship

      This Board Agenda Director Reference Guide on fostering the board-CEO relationship provides practical advice to...

    • Forvis Mazars AI 2025

      Performance Pulse: Are UK businesses prepared for AI?

      Forvis Mazars measured the AI preparedness of more than 300 UK businesses: 97% say they're...

    • Parker review cover

      Improving the Ethnic Diversity of UK Business, Parker Review update 2025

      The 2025 Parker Review update report, supported by EY. Over the past year, significant progress...

  • Events
  • Search by topic
    • Governance
    • Strategy
    • Risk
    • Ethics
    • Regulation
    • ESG
    • Investor Relations
    • Careers
    • Board Expertise
    • finance
    • Technology

US corporates ‘should do more’ to help environment and low-paid workers

by Gavin Hinks on September 1, 2021

Respondents to a recent US poll say a more “evolved” form of capitalism is needed to better reflect the interests of stakeholders.

ESG strategy icons over green cityscape

Image: Metamorworks/Shutterstock.com

Two years on from a declaration by the biggest US companies that they would switch to serving stakeholder interests, public opinion says large corporates should be doing more for the environment and for the lowest paid workers.

The news comes in a survey carried out to monitor reaction to the Business Roundtable’s statement in 2019 that it would prioritise stakeholders over shareholders. Roundtable members include companies such JP Morgan Chase, Apple and Amazon. The statement was a seminal moment in corporate governance of recent times, and prompted commentary and studies around the world.

The survey, conducted by JUST Capital, a not-for-profit that ranks companies on their efforts to make a societal contribution, finds that there is generally support for big business and capitalism in the US. Broadly 65% of those polled believe large companies “promote an economy that serves all Americans”. But there are marked areas where improvements could be made.

While 68% say large companies have a positive impact on shareholders, only 41% say they do the same for the environment, with 36% saying the impact is negative. When it comes to workers, 32% of those surveyed say large companies have a negative impact on their financial well-being, while 46% say the impact is positive.

When asked to offer their views on the current form of American capitalism, the largest proportion say there is more work to be done. When asked if capitalism “ensures the greater good of society”, 41%—the biggest group—say a more “evolved” form of capitalism is needed. A similar figure, 42%, say more work is needed to produce a society fit for the “next generation”. And again, when asked if capitalism works for the average American, 40%, again the largest group, say a bigger effort is required.

Improving the treatment of stakeholders

According to Jennifer Tonti, managing director of research for JUST Capital, recent times have forced US companies to think of their stakeholders “like never before”. Perception may be good in some areas, but not in all.

“Based on our findings from this latest poll, we see that the American public generally perceives the actions of corporate America as being positive—but when it comes down to brass tacks, there is much more to be done to support specific stakeholders, principally the environment and our nation’s lowest paid workers,” writes Tonti.

Elsewhere there have been less generous assessments of the Business Roundtable. In a research paper out at the end of August, Harvard academics Lucian Bebchuk and Roberto Tallarita conclude the 2019 statement seems to have been “for show” and served to side step government intervention.

After a study of Roundtable member documents detailing company purpose and guidance, the pair commented: ”Overall our findings support the view that the BRT (Business Roundtable) statement did not represent a meaningful commitment and was not planned or expected to bring about meaningful improvements in the treatment of stakeholders.”

They added that the “main” impact may be to “insulate” corporate from shareholders and to head off potential action from politicians and regulators.

Pessimistically, they concluded: “Reliance on the discretion of corporate leaders to serve stakeholders, as supporters of stakeholder governance advocate, would be an ineffective and counterproductive approach to the protection of stakeholders.”

JUST Capital contains some good news for Business Roundtable, but there is also evidence that a significant number of people are not convinced. That will add to the emerging view that a good deal more work may be needed if the 2019 statement is to prove meaningful.

  • Facebook
  • Twitter
  • Google+
  • LinkedIn
  • Mail

Related Posts

  • Academic warns that 'good' corporations are bad for democracy
    September 13, 2021
    US flag flying on Wall Street

    So called 'good' corporations have “not actually changed, at least not in terms of their legal mandates”, claims Joel Bakan.

  • US corporate governance improvements 'slowed or stagnated' in 2021
    January 13, 2022
    Employees talking outside offices

    Report suggests crisis "fatigue" is eating away at gains made during 2020, with employee issues and ESG highlighted as concerns.

  • Business Roundtable stakeholder statement 'mostly for show', says study
    August 25, 2021
    Jamie Dimon

    Harvard researchers say signatories have made few changes in company documents that indicate a corporate purpose favouring stakeholders.

  • Good governance boosts companies' CSR performance
    July 5, 2021
    Board members looking at corporate reports

    Study concludes that “corporate board reforms... appear to have a positive spillover for non-financial stakeholders”.

For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda

Business Roundtable, corporate governance, research, stakeholder capitalism, stakeholders, US

Search


Follow Us

Boardroom Intelligence

Stay in the know and register for free to receive our essential Boardroom Intelligence Briefing featuring:

  • Top governance headlines, expert opinion & boardroom insights, exclusive whitepapers & strategy guides, delivered to your inbox every week – Sign up here

 

Most Popular

Featured Resources

wef global risks 2025

The Global Risks Report 2025

The 20th edition of the Global Risks Report reveals an increasingly fractured global...
Supply chain management cover

Strategic Oversight in Supply Chain Management: A Guide for Corporate Boards 2025

Supply chains have become complex, interdependent and opaque and—according to research...
OB-Cyber-Security

Cyber Security: What Boards Need to Know

Maintaining firewalls, protecting servers and filtering malicious emails rarely make...

The IA’S Principles Of Remuneration 2024 2025

This guidance from the Investment Association is aimed at assisting remuneration...
Diligent 2024 leadership tech cover

Leadership, decision-making & the role of technology: Business survey 2024

This research report by Board Agenda and Diligent sheds light on how board directors...

Director Reference Guide: Navigating Conflict in the Boardroom

The 'Director Reference Guide' on navigating conflict in the boardroom provides practical...
Nasdaq 2024 governance report cover

Nasdaq 2024 Global Governance Pulse

This Nasdaq survey gathered data from more than 870 board members, executives, and...

Becoming a non-executive director (4th edition)

Board composition is the subject of much debate, while the role of the non-executive...
art & science brainloop new cover

The Art & Science of Creating an Effective Board

Boards are coming under more scrutiny and pressure than ever before from regulators,...
SAA First time NED guide

First Time Guide for Non-Executive Directors

The role of the non-executive director has never been more vital: to advise, support,...

Register Free

By registering you will be able to access one premium article each month, selected partner newsletters and content, plus updates about our events and podcasts. Register


  • Editors & Contributors
  • Editorial Advisory Board
  • Board & Governance Services
  • Media Marketing Solutions
  • Contact Us
  • About Us
  • Board Director Network
  • Terms & Conditions
  • Privacy Policy
  • Cookies
|

Copyright © 2025 Questor Media Group Ltd.

  • Terms & Conditions
  • Privacy Policy
  • Sitemap