Amid geopolitical and macroeconomic turmoil, three years after the Business Roundtable's landmark statement on the purpose of the corporation, stakeholder capitalism and its focus on environmental, social, and governance (ESG) issues are under attack. Critics of “woke capitalism” are now arguing that a strong focus on ESG is naive in times of economic uncertainty.
In my experience as a CEO of a company that works with 700,000 corporate directors and executives in over 130 countries, these criticisms miss the mark and fail to recognize the powerful push from customers, employees, and investors for organizations to stand for more than just financial targets. However, these discussions point to the urgent need to deliver on the promise of stakeholder capitalism–because discussions about climate change, inequality, and conducting ethical business relationships aren’t going away.
