Change.org Petition: Let's Keep Politicians Out of Stakeholder Capitalism

Politicians should stay out of business management practices and business should stay out of politics. Who wants to worry that making a strategic or tactical business recommendation to your company, board, or client about people strategies or the environment might brand you a Republican or a Democrat? Businesses should get involved with politics only when an issue is directly related to their purpose and/or their survival or those of its stakeholders, and then only with the approval of a majority of shareholders.

The opposition makes no sense when Stakeholder Capitalism is something even Republican and Democratic governors can agree on: 19 Republicans, including Nikki Haley, Rick Scott, Greg Abbott and Sam Brownback, 1 Libertarian, and 16 Democratic governors such as Mario Cuomo, Patrick Deval, and John Hickenlooper all signed public benefits corporation statutes in their states which enshrine Stakeholder Capitalism into law.

I have a very small favor to ask: consider signing the Change.org petition below that simply asks politicians to stay out of a non-partisan movement most approve of.?This is not part of any fund-raising campaign, as that is not the Enterprise Engagement Alliance business model, and this doesn’t request an endorsement of any one particular approach to the implementation of Stakeholder Capitalism principles. The EEA is not getting involved with politics or endorsements of any kind--only to defend the work of a generation of business and academic practitioners who would prefer not to have their work identified for partisan purposes on either side.

This is a non-partisan international movement, so I am inviting my colleagues from around the world to help out.

Since 1989, I and many others have worked in one way or another on the practices that are now known as the "S" of ESG or Stakeholder Capitalism. Social means addressing the needs of customers, employees, supply chain and distribution partners, and communities, not necessarily corporate social responsibility in the world of Stakeholder Capitalism, otherwise it wouldn't include the word "capitalism" in its name. Never did I or anyone else I know ever think the subject would become politicized, nor in such a way that distorts its meaning.?

Understanding that the level of awareness and understanding of the concept of #Stakeholdercapitalism remains very low (now only 718 LinkedIn followers) and last I looked maybe 100 tweets at most a day, I do not have much expectation for this effort. It’s simply another tactic in a long-term playbook going into the earliest stages of this debate.

Here’s a link to the petition.

Below is the text of the petition:

Let's Keep Politicians Out of Stakeholder Capitalism

Now that the US 2024 presidential race has begun, let's those of us on the right, left and middle agree on something: politicians on on all sides must stay out of the way of the non-partisan, free-enterprise?Stakeholder Capitalism ?movement to make capitalism work better for shareholders and employees, customers, supply chain and distribution companies, communities, and the environment.

Please sign this petition if you believe politicians should stay out of business management practices and business should stay out of politics. Who wants to worry that making a strategic or tactical business recommendation to your company, board, or client about people strategies or the environment might brand you a Republican or a Democrat? Who wants to have to decide if they are going to work for a Republican or a Democratic organization? Businesses should get involved with politics only when an issue is directly related to their purpose and/or their survival or those of their stakeholders, and then only with the approval of a majority of shareholders.

A growing number of politicians are now opposing a reform movement upon which?most people agree ?by deliberately conflating it with "wokeism" or "greenwashing" to create a straw man that advances their agenda--to make or raise money and win votes by sowing division and outrage. While many of the attacks are focused on the "E" of ESG and perceived assaults on fossil fuels, these attacks also threaten efforts to enhance performance and experiences for customers, employees, and other stakeholders who comprise the "S" of ESG.

This is particuarly vexing because until now Republicans and Democrats have agreed on Stakeholder Capitalism. What do such prominent conservatives as Rick Scott of Florida, Nikki Haley of South Carolina, Sam Brownback of Kansas, Mike Pence of Indiana, and Greg Abbott of Texas all have in common? They like liberals Andrew Cuomo from New York, Deval Patrick of Massachusetts, and John Hickenlooper of Colorado all signed into law public benefits corporation statutes in their states that enshrine into corporate law the principles of Stakeholder Capitalism for any company which elects to operate according to these principles.

This petition asks Democrats, Republicans, and independent politicians to let free enterprise pursue an organic, non-partisan strategy to make business better for everybody that requires no involvement of government in the US and most countries. If states wish to legally bar their pension funds from investing in ESG-oriented funds, let the voters decide if they agree and courts decide if that's legal: those laws have no impact on most companies and investors that wish to profit from Stakeholder Capitalism principles.

The Stakeholder Capitalism movement has the potential to have a major impact on our daily lives because organizations dedicated to it:

1. Value employees as a critical asset so are focused on paying full-time workers at least a living wage, providing growth opportunities, and addressing basic financial and health needs, and see DEI (diversity, equity, and inclusion) as a business opportunity, not just a right.?
2. Produce products and services that provide true value and respect for the needs and loyalty for the customer, backed by understandable instruction manuals and a serious commitment to customer service.
3. See solving social and environmental problems as a business opportunity, not a guilt trip.
4. Strategically support community activities that are consistent with their own purpose and goals, including the development of a pipeline of customers, employees, or distribution partners, so that everyone wins.
5. Do not offload their costs on to society by underpaying and undersupporting employees, acting in a fraudulent or deceptive manner, or abandoning facilities, damaging infrastructure or polluting the environment.
6. Stay out of politics unless an issue is directly related to their well-being. See this interview about the role of politics with a?leading proponent.

Let the free market decide what types of organizations people wish to do business with or invest in.

Let the courts decide whether government can enforce anti-ESG rules, which are already being?opposed by banks ?as being a violation of their fiduciary duties and free speech rights.

Let voters decide on their own if it they support laws that force pension funds and others to invest in funds in a way that diminishes their returns and enhances their risks, as these laws and regulations will not affect the ability of most organizations to profit from the practical principles of Stakeholder Capitalism.

Because of the?confusion surrounding ESG , politicians are about ready to set back the 50-year old non-partisan Stakeholder Capitalism reform movement that has a direct impact on the lives of every employee, customer, and citizen, and on every government, for-profit, or not-for profit business, and community.

Without any involvement of government, thousands of companies significantly improved the quality of their products in manufacturing through total quality management practices available to all that never got politicized, and we?can do the same for the way we manage people .

Let's try to stop politicians on both sides of the aisle from tinkering with free enterprise when no one is asking for their help or taxpayer dollars for Stakeholder Capitalism and when some are trying to divide Americans on the one thing most can agree on.?

This interview with?Edward R. Freeman , a professor at the Darden School at the University of Virginia, is included to explain the subject and is not meant to imply that he has or will sign this petition.?

The documentary, "Fishing With Dynamite ," explains the concept and why Stakeholder Capitalism has converts among legendary shareholder capitalists.

Click here ?to view YouTube video interviews or?click here ?to listen to podcast interviews with leaders in the Stakeholder Capitalism movement to better understand its principles and how it affects the lives of everyone, including investors and society.?Click here ?for a complete library of resources.

The Enterprise Engagement Alliance at?TheEEA.org ?is a think tank, media, and advisory firm that creates value by helping organizations and professionals profit from these principles and does not solicit donations.?