Filling a perceived moral vacuum in Washington, CEOs have warned of threats to democracy and announced commitments to address racial inequality. Many have made their position on Trump’s approach to the climate crisis and immigration publicly clear.
There is a new government in the White House, and on several policy fronts, President Joe Biden and corporate America are more aligned. But when it comes to thinking about the role their companies play in society, business leaders must not go back to their old habits.
“[This] it becomes an opportunity to continue this self-reflection, “Deepak Malhotra, professor of business administration at Harvard Business School, told me.
Why it matters: The public increasingly relies on companies to make the right calls on political and social issues. According to the 2021 Edelman Trust Barometer released earlier this month, companies replaced the government as the most trusted institution during the Covid-19 pandemic.
Following the rebellion of pro-Trump supporters who invaded the United States Capitol, a survey of 40 CEOs conducted by Jeffrey Sonnenfeld of the Yale School of Management found that 96% of respondents felt that Trump should be removed from office.
These same leaders now have a role to play as the impeachment process unfolds, Sonnenfeld told me. The Senate trial is scheduled to begin on February 9.
“I think they should continue to formally and informally press for responsibility,” said Sonnenfeld. “Our government system is the main reason for the success of their business – and they know it.”
Then there are the impending debates on issues like the climate. Over the past four years, companies have become accustomed to claiming the leadership cloak as the Trump administration shut down.
“Business was suddenly overtaking the government by a wide margin,” said Malhotra.
One fact: companies will be forced to remain actively engaged in social issues simply because of changing consumer tastes. As was clear after George Floyd’s police murder last summer, which drew millions of protesters, younger customers increasingly demand that the brands they support support causes like Black Lives Matter; workers are asking for the same from their employers.
“Companies were forced to deal with these issues, not specifically because of President Trump, but because of what was happening on the streets and in communities, and in their own workforce,” said Malhotra.
Look at this space: Normally, the role of corporations in society would be discussed next week in the Swiss Alps, while executives met at the World Economic Forum in Davos. This year, unsurprisingly, the January edition of WEF is a fully digital event, although the group expects to hold a face-to-face event in Singapore in the summer.
Talks on the subject, with leaders like BlackRock CEO Larry Fink, Bank of America CEO Brian Moynihan, and Salesforce CEO Marc Benioff, are taking place. Keep an eye on Before the Bell for highlights.
Is Apple’s iPhone 5G selling? We’re about to find out
Wall Street has relied on a wave of iPhone 12 sales to boost Apple’s profits. This week, investors will know whether these predictions are coming true.
Apple reports profits after U.S. markets closed on Wednesday. Given the company’s 75% increase in shares last year – partly due to expectations about wild sales of the iPhone 12 – it will be a major market event.
Much depends on demand from China, according to Daniel Ives, an analyst at Wedbush Securities, putting any comment on the country’s economic return in focus.
“China remains a key ingredient in Apple’s recipe for success, as we estimate that about 20% of iPhone updates will come from this region next year,” Ives said in a recent note to customers.