General Discussion
In reply to the discussion: In my opinion, the Democrats cannot address any issue until this issue addressed. [View all]PatrickforO
(14,571 posts)The current capitalistic 'market' economic principle of the primacy of the shareholder.
Let me explain: Right now, if you are CEO of a publicly held company, your ONLY job is to increase shareholder earnings. This is the fiduciary responsibility of any C-Suite corporate officer.
For workers, this means that if you can, you will bust unions, weaken safety measures in your physical plants, try to steal pensions, and drive wages and benefits down as far as you can.
For consumers, this means that you'll cut corners to get around regulations meant to keep consumers safe, decrease the size of packaging but charge the same price, renege on warranties if possible.
For the environment, you will try your best to never have to pay for any damage your company does to the environment. If you do damage the environment, you'll fight to escape any financial responsibility so it can remain an 'externality.'
And, of course, you will donate large sums of money to politicians that vote for policies that deregulate, privatize and redistribute wealth from the treasury to corporate profits.
All this ekes out the uttermost profits for shareholders.
Expand fiduciary responsibility to include the welfare of workers, consumers and the environment so these things, as well as shareholder earnings, must be addressed, and you solve much of the problem that has driven corporate interests to corrupt our politicians.
Fortunately Elizabeth Warren has introduced the "Accountable Capitalism Act" this August that would do just that. Here's a link, and I encourage all of you to read the article and support this legislation in the new Congress.
https://www.vox.com/2018/8/15/17683022/elizabeth-warren-accountable-capitalism-corporations
Here's a short excerpt:
Traditionally, she writes in a companion op-ed for the Wall Street Journal, corporations sought to succeed in the marketplace, but they also recognized their obligations to employees, customers and the community. In recent decades they stopped, in favor of a singular devotion to enriching shareholders. And thats what Warren wants to change.
<snip>
Warren wants to eliminate the huge financial incentives that entice CEOs to flush cash out to shareholders rather than reinvest in businesses. She wants to curb corporations political activities. And for the biggest corporations, shes proposing a dramatic step that would ensure workers and not just shareholders get a voice on big strategic decisions.
Warren hopes this will spur a return to greater corporate responsibility, and bring back some other aspects of the more egalitarian era of American capitalism post-World War II more business investment, more meaningful career ladders for workers, more financial stability, and higher pay.