Last Updated on February 15, 2021, 6:26 AM AST by Anthony Morris
US: Previously, companies were making money, selling goods, and hiring people. They were run by managers who were proudly capitalist and believed in the fundamentals of the country.
It does not look anymore. Large corporations’ support for green energy legislation, various edicts on social justice, and the silence of right-wingers on Twitter have become so routine that it is almost no longer news.
The question is, why? People who work at these companies often complain that most employees view their employers’ new corporate links with contempt. They believe it is a nuisance driven by a vocal edge of the workforce.
Cave companies say that they just do not need the trouble to explain to the left-wing business media why they do not support the AOC’s Green New Deal.
The conventional wisdom among economic conservatives I speak to is that the American vigilance of the business world cannot last forever because it is not profitable in the long run. For example, the NFL rating for the social justice position was weak all year, as was this year’s Super Bowl. That means the NFL will have to go back to football.
Suppose Nike’s sales fall amid embracing the sneaker brand of the ultimate fighter for social justice. In that case, former NFL QB Colin Kaepernick, the founder of the one-on-one knee movement, is likely to take the company into ‘ attracts a new direction.
That’s why the NBA – another big business – made the national anthem mandatory before the game just after one of its owners, liberal tech entrepreneur Mark Cuban, infuriated many fans by pulling it from the start of Mavericks games.
Remember, 74.2 million consumers voted in part for Donald Trump because they can not stand the virtues thrown into their faces every minute of their lives.
It all makes sense until you understand the leftist forces that have come together to transform corporate America into something that looks like the progressive wing of the Democratic Party. Left may hate capitalism, but he was implementing capitalist instruments to bend large corporations to his will.
Changes in the money management business highlight how successful leftists have become. Shareholder votes once focused on prosaic topics, such as approving mergers, paying CEOs, or changing leadership.
Today, it is a matter of interest where companies are bombarded by demands for corporate diversity (more women, minorities, and transgender people in positions of power), green energy, and open support from what the left is calling social justice.
OK, corporate diversity is a worthy goal. But since then, many shareholders have been looking for retirement investments. Were they so concerned about whether they have shares in a company that supports eliminating greenhouse gas emissions or canceling Columbus Day?
Answer: When those shareholders became progressive activists, they learned how to influence money managers to run politics instead of their profits.
Prominent money executives hire proxy advisory firms to guide on various corporate governance issues and shareholders’ votes. This makes advisory firms very strong, as most Americans invest through mutual funds and other managed accounts.
And it is no secret that the progressive-left agenda has gained support from these outfits in recent years. With that, trillions of dollars support shareholder votes from places like Larry Fink’s BlackRock and Vanguard, now openly left-wing business.
You could say that these companies set an agenda based on careful analysis. Some studies show that corporate diversity leads to higher profits. Global warming could destroy the economy.
Studies also show the opposite – that diversity does not affect profits. Global warming is real, but not the immediate existential threat that requires us to kill jobs by killing the Keystone XL pipeline during a pandemic recession.
But the power of the left is hard to ignore. They find common ground with public pension funds run by liberal politicians who also want to influence corporate behavior on the left.
It was not so long ago when companies checked the investor pendulum that bought one share and came to shareholders’ meetings to conjure up crazy questions from the CEO. Money managers and proxy companies were not encouraged by outside powers to vote in a certain way.
But most shareholders’ votes now involve progressive prescriptions under the guise of the so-called Environmental Social Governance investment. ESG, as it is known on Wall Street, is a way of measuring everything from complying with a green energy business venture to embracing causes like Black Lives Matter.
The average retail investor in mutual funds has no said or vote on this significant transformation, even if their money is used for political purposes. The fund responds to the outspoken minority who have determined how the game is played.
Anthony Morris covers stories related to politics and regional developments. His in-depth reporting about governance and reforms makes him stand out in regional journalism, with a deep analysis of political trends and their impact on Caribbean communities.
