Good morning.
Over the past year and a half, I’ve been watching to see what effects the political backlash against ESG might have on corporate behavior. And so far, I haven’t found much. Companies are certainly becoming more cautious about speaking out on controversial social and political issues, hoping to stay out of the political fray. But most corporate leaders I speak with remain committed to efforts to address climate change, increase diversity and inclusion, and address social inequalities.
However, our new survey of Fortune 500 CEOs got me thinking. This is the question we asked:
As you know, there has been a significant political backlash against ESG and “woke” capitalism in the past year. Which of the following statements most closely reflects your view of this development?
1. This was a helpful fix. Environmental, social and governance (ESG) issues were unduly affecting business decisions.
2. This is an unfortunate development. Business leaders should be encouraged to consider environmental, social and governance aspects in decision-making.
CEO responses were almost evenly split: 48% for No. 1 and 52% for No. 2. This suggests that attacks on ESG by people like Florida Gov. Ron DeSantis and the editors of The The Wall Street Journal has found its mark. . I suspect 48% of people also express frustration that activists and regulators have gone too far, attacking oil companies for increasing production in response to Russia’s invasion of Ukraine or proposing overly comprehensive rules to report on “Scope 3” carbon emissions from suppliers and customers. . And there is certainly reason to argue that the acronym “ESG” is a confusing and bureaucratic framework for measuring social impact.
But none of this changes my view that the increased focus on social impact by corporations in recent years has been a necessary and welcome development. It is not primarily driven by calculation or political posturing, but rather by increasing demands from employees, customers and investors that companies address the fundamental challenges of our society. And the best companies are increasingly finding that doing so is good for their business (and ultimately, their shareholders).
So watch this space. The political environment is sure to get noisier as the next election approaches. But the opportunity for companies to better demonstrate their value to society will also grow. And my bet is that the companies that do it best will prevail.
More news below. We’ll be releasing the rest of the Fortune 500 CEO survey results in the coming weeks.
Alan Murray
@alansmurray
alan.murray@fortune.com
TOP NEWS
gold mine
Gold miner Newmont is buying Australia-based Newcrest Mining for $17.5 billion. The acquisition would make Newmont, either the world’s largest gold miner per production, even greater, allowing it to produce almost the double as its closest rival. But Newmont is also interested to Newcrest’s operations in copper, an important component in electronic products such as electric vehicles. The Wall Street Journal
TikTok allegations
A former ByteDance engineer accused the Chinese company of a “culture of lawlessness” in a wrongful-dismissal lawsuit filed Friday in California. Among the former employee’s claims is an allegation that TikTok’s parent had a unit of Chinese Communist Party members to monitor its apps. US politicians and security officials say ByteDance can share US Personal Data with Chinese officials, allegations the company denies. The New York Times
sunday election
Voters in Turkey and Thailand went to the polls on Sunday. Thai voters the opposition parties supported, including the new Avança party led by businessman Pita Limjaroenrat, over parties backed by the military. Turkey’s vote seems to be directed to a stream since President Recep Tayyip Erdogan did not get an absolute majority.
AROUND THE WATER COOLER
Duke Energy’s CEO says his entire business strategy hinges on the shift to cleaner energy: “This one issue is so important to our company.” by Phil Wahba
The “karmic quality” of Hindenburg’s war against Carl Icahn has just acquired a new cast. It’s no longer just about shorting their stocks, but also their bonds by Will Daniel
“It’s basically a game of chicken.” The debt limit has no real winners and potentially one big loser: the US economy by Tristan Bove
Google, Meta and other tech companies are cutting back on a cherished Silicon Valley tradition: summer internships by Andrea Guzman and Kylie Robison
JPMorgan wants to own you by Lance Lambert
Who is Linda Yaccarino, really? Former colleagues reveal tough ‘Lady from Long Island’ Elon Musk has chosen to lead Twitter by Kylie Robison
I used ChatGPT to write a cover letter and fooled almost 3 experts and an AI content detector by Chloe Berger
Moody’s chief economist says housing market correction would breathe new life if US defaults. by Lance Lambert
This edition of CEO Daily was curated by Nicholas Gordon.
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