Category: Social
Shareholders should vote against chairs at firms failing on stakeholder capitalism, says inaugural report Shareholders should vote against chairs at firms failing on stakeholder capitalism, says inaugural report Shareholders should vote against chairs at firms failing on stakeholder capitalism, says inaugural report
Sep 23rd, 2020
Investors should start “automatically” voting against the chairs of companies that “fail to demonstrate a concerted commitment to a stakeholder primacy model”, says the debut report from a new, high-profile initiative on corporate purpose. In a world first, the report ranks more than 800 firms on their response to COVID-19 and on tackling inequality, in what it calls a “quantitative stress test of corporate purpose”.
Co-led by Hiro Mizuno, ex- CIO at Japan’s government pension fund, Sacha Sadan, Director of Investment Stewardship at Legal & General Investment Management, and Oxford academic Robert Eccles, The Test of Corporate Purpose was formed earlier this year to test whether corporates are ‘walking the talk’ when it comes to their statements around stakeholderism.
Its inaugural report, ‘COVID-19 and Inequality: A Test of Corporate Purpose’ warns of corporate “purpose washing” and ranks poorly many of the signatories to last year’s …