As thousands of business executives descend on the Swiss ski resort of Davos this week, it’s easy to be cynical. Their stated goal of stimulating “bold collective action” is sound, even noble. Solving today’s macro crises–climate change, energy security, and global inflation, to name but a few–requires business to be proactive.
However, many Davos delegates believe they have a fiduciary duty to prioritize investors above all. As I often hear in conversations with major businesses, “We can’t all be Patagonia.” And indeed, while most modern companies now boast a slew of environmental and social programs, few genuinely challenge the primacy of quarterly returns. If they do, then the financial markets let the errant chief executive know soon enough.
