Filling a perceived moral vacuum in Washington, CEOs have warned of threats to democracy and announced commitments to address racial inequity. Many have made it clear in public where Trump’s approach to the climate and immigration crisis lies.
There is a new administration in the White House, and on a number of political fronts, President Joe Biden and Corporate America are more closely aligned. But when it comes to thinking about the role their firms play in society, business leaders should not go back to their old ways.
“[This] it becomes an opportunity to continue that self-reflection, “Deepak Malhotra, a professor of business administration at Harvard Business School, told me.
Why it matters: The public is increasingly relying on companies to make fair calls on political and social issues. According to the 2021 Edelman Trust Barometer released earlier this month, business has replaced the government as the most trusted institution during the Covid-19 pandemic.
Following riots by pro-Trump supporters who stormed the US Chapter, a survey of 40 CEOs by Jeffrey Sonnenfeld of the Yale School of Management showed that 96% of respondents thought Trump should be charged and removed from office.
These leaders now have a role to play as the removal process unfolds, Sonnenfeld told me. The Senate trial is scheduled to begin Feb. 9.
“I think it should continue to formally and informally put pressure on accountability,” Sonnenfeld said. “Our system of governance is a big part of the reason for their success in business – and they know it.”
Then there are the upcoming debates on issues such as climate. For the past four years, businesses have become accustomed to claiming the leadership cloak as the Trump administration has stepped down.
“Business has suddenly outpaced the government by a wide margin,” Malhotra said.
One thing: Businesses will be forced to continue to actively engage in social issues, simply because of changing consumer tastes. As was clear after the police murder of George Floyd last summer, which exposed millions of protesters, younger customers are increasingly demanding that the brands they support cause like Black Lives Matter; workers demand the same from their employers.
“Businesses have had to take these issues into account, not primarily because of President Trump, but because of what is happening on the streets and in communities and in their own workforce,” Malhotra said.
Watch this space: Normally, the role of corporations in society will be discussed next week in the Swiss Alps, while executives gather at the World Economic Forum in Davos. This year, surprisingly, the January edition of WEF is a completely digital business, although the group hopes to hold a personal event in Singapore in the summer.
Conversations on this topic with leaders such as BlackRock CEO Larry Fink, Bank of America CEO Brian Moynihan and Salesforce CEO Marc Benioff continue. Keep an eye on Before the bell for highlights.
Is Apple’s 5G iPhone for sale? We’re about to find out
Wall Street relied on a bunch of iPhone 12 sales to supplement Apple’s earnings. This week, investors will find out if such predictions come true.
Apple reports gains after closing in the US markets on Wednesday. Given the company’s 75% increase in stock over the past year – partly due to anticipated wild sales of the iPhone 12 – it will be a major event in the market.
Much depends on demand from China, according to Wedbush Securities analyst Daniel Ives, highlighting any comments on the country’s economic recovery.
“China remains a key ingredient in Apple’s recipe for success, as we estimate that about 20 percent of iPhone updates will come from this region next year,” Ives said in a recent note to customers.