Following the Business Roundtable’s August 2019 statement redefining the purpose of the corporation, IRC4HR® has wondered what a return to stakeholder capitalism means and will look like for business organizations that subscribe to a stakeholder-driven model. We are therefore excited to read and share the results of JUST Capital’s 2019 Roadmap for Stakeholder Capitalism Report and Survey, released in October 2019. The report investigates current levels of trust towards U.S. companies at large, and highlights issues that the American public wants companies to prioritize to create an economy that works for all Americans.
While almost 95% of respondents agree that “Americans deserve an economy that allows each person to succeed through hard work and creativity and to lead a life of meaning and dignity,” only 45% believe that corporations are actually walking the talk in promoting an economy that serves all people. Further, 60% felt that companies still prioritized the needs of their shareholders above all employees and customers.
Treat Employees Well
A key takeaway from the report is that across nearly all reported demographics – liberal, conservative, high-income, low-income, men, women, millennials, and boomers – respondents ranked worker-related issues of pay, benefits, and treatment as the highest priority for just business practices. Martin Whittaker, CEO of JUST Capital, summarizes the top priorities further in Fast Company, sharing,
Four of the top five issues people want corporate America to commit to include: paying a fair wage; paying a living wage; providing good benefits and work-life balance; and providing a diverse workplace with equal opportunity and pay equity.
The full report offers more insights and ideas for corporate leadership and researchers.
On November 12, JUST Capital released its rankings of America’s 100 Most JUST Companies for 2020, which measures how the U.S.’s largest publicly traded companies perform in relation to issues affecting workers, customers, communities, the environment, and shareholders. And on November 13, JUST Capital hosted its first Quarterly JUST Call, which provides a platform for CEOs to speak with the investment community about how they are creating value for all of their stakeholders, over the long term.
Roadmap for Stakeholder Capitalism Report and Survey
Jodi Starkman is Executive Director of the Innovation Resource Center for Human Resources.