Corporate America Has Come a Long Way in Doing the Right Thing

I was recently in Davos, site of the World Economic Forum’s Annual Meeting, where much of the talk this year centered around purpose and sustainability. It was clear from the sessions I attended and the conversations in which I engaged that 2020 is shaping up to be the year for organizations that already are, or that strive to be, purpose-driven. I expect even more companies to shout their purpose-based messages and commitments from the rooftops, and in many cases—thankfully—to actually walk the walk.

I’ve written previously that last year’s statement by the Business Roundtable renewed in me a sense of hope and clear action. And it’s exhilarating to lead a company that proves doing and saying the right things is good business. I know this to be true, because I’ve experienced it first-hand.

But there are some influencers who think the intention of the BRT in connection with its August declaration, and corporate social responsibility (CSR) in general, is bogus.

For example, Valerie Keller, the co-founder and CEO of Imagine, which helps businesses collaborate to work toward the U.N. Global Goals, told an audience in Davos that “purpose is passé.”

And then there’s political commentator and former U.S. Secretary of Labor Robert Reich. In a recent opinion piece in Newsweek, Reich calls out CSR as “rubbish,” a “con,” and a “sham.” Reich, who served in the administrations of Presidents Gerald Ford, Jimmy Carter, and Bill Clinton, enjoys a massive social media following, so his opinions on the matter have been shared broadly.

“The only way to make corporations socially responsible is through laws requiring them to be—for example, giving workers a bigger voice in corporate decision making, making corporations pay severance to communities they abandon, raising corporate taxes, busting up monopolies and preventing dangerous products (including faulty airplanes) from ever reaching the light of day,” Reich wrote. “If the Business Roundtable and other corporations were truly socially responsible, they'd support such laws. Don't hold your breath.”

Reich proceeds to call out the likes of Boeing, General Motors, AT&T, Amazon, G.E., U.S. Steel—all BRT members—that in 2019 took actions that tend to benefit shareholders but hurt customers, families, and communities. He lambastes these companies for their 2019 layoffs, employee benefit cutbacks and plant closings—and Boeing especially for its mishandling of the Boeing 737 Max tragedies.

He’s not wrong, completely. While Corporate America has come a long way in terms of catering more to all stakeholders vs. only shareholders, it still has a long way to go. This can’t be denied.

But it appears to me that it’s much too convenient for Mr. Reich to call out corporate misdeeds while not mentioning a single company that is taking CSR seriously and walking the walk. And that’s what I’m going to do because the number of companies that are driving revenue by doing the right thing is increasing by the day.

For example:

●    Big business global CEOs, Mr. Reich’s frequent target, are committing tens of millions of dollars to wildfire relief in Australia (my homeland):

○    Australian casino mogul James Packer has donated $3.45M.

○    Minderoo Foundation, a nonprofit founded by Australian businessman and his wife Andrew and Nicola Forrest, have pledged $48M.

○    News Corp. is pledging $3.5M.

○    Facebook is donating $1.25M and Amazon is donating $690,000. Yes, critics say these companies can afford to do much more. They certainly can, and perhaps they will. But any donation is appreciated, no matter the size. It will all help the recovery process.

●    Then there’s Dick’s Sporting Goods, which pulled assault rifles from its stores after the Parkland school shooting. And last September, Walmart announced it will reduce its gun and ammunition sales following last August’s mass shooting at the El Paso, Texas, Walmart. Both companies suffered shareholder and pundit backlash over these decisions, but they stood firm in putting consumer safety over profits.

●    Barilla, the Italian multinational food company, is committed to the environment. Through its “Good for the Planet” promise, the world’s largest pasta producer employs sustainable and ethical protocols from the field to the final product.

●    And Microsoft made a commitment in mid-January to be “carbon negative by 2030. If all goes according to plan, the company will have eliminated as much carbon by 2050 as it has generated since its founding 45 years ago.

Putting together a list with companies that take CSR seriously is as easy an exercise as it must have been for Mr. Reich to compile his selective list.

The evidence is apparent. My hope is that as 2020 rolls on, the list of companies that take the BRT statement to heart far outweighs the list Mr. Reich is putting together. As with all things, time will tell.