THIS WEEK: CVS commits $50 million toward improving affordable housing. Senators offer a bipartisan proposal to address paid parental leave. We explore the win-win of tuition reimbursements. Goldman Sachs forms a new Sustainable Finance Group to meet growing investor demand.
Bringing Balance to the Boardroom
Former corporate attorney James Gamble sparked a heated debate around business governance this week with a New York Times Dealbook Briefing detailing his plan to “Rein in ‘Sociopaths’ in the Boardroom.”
His thesis – that companies are obligated by law to make decisions that maximize economic value, and therefore care only about profit – is not a new one. And his solution – to build into corporate bylaws a set of ethical rules that address the needs of employees, communities, customers, the environment, and future generations – tracks with the rise of benefit corporation governance, and with various new policy proposals. Most importantly, it also aligns with what we’ve been hearing from the American public for the last five years.
Whether this solution can help improve our system of free market capitalism remains to be seen. What is absolutely certain is that the time is now to shift toward a more balanced, stakeholder-driven model as the preferred framework for driving economic value.
– Martin Whittaker
Quote of the Week:
“Value your employees. It’s not all about the dollar.”
– Female, Republican, 33, Virginia
From the Analysts’ Desks
WORKERS
Abbott invests in building a more diverse talent pipeline with an extensive STEM internship program, including 66% women and 58% minorities. – Sarah Vieux
CUSTOMERS
The latest data breach from Capital One could compromise over 100 million people, and lead to $150 million in fines. – Eric Chung
PRODUCTS
Goldman Sachs forms a Sustainable Finance Group to meet growing demand for more sustainable investments, and Moody’s acquires Four Twenty Seven to deepen its climate risk portfolio. – Kavya Vaghul
ENVIRONMENT
Amazon encourages brands to reduce packaging, echoing moves by just companies like Microsoft to make their supply chains more environmentally sustainable. – Polly Tao
COMMUNITIES
CVS expands on its Building Healthier Communities initiative, investing $50 million in affordable housing to help provide support for underserved populations. – Steffen Bixby