The Daily What American C.E.O.s Are Worried About
Aug 21, 2019
Andrew Ross Sorkin, a financial columnist at The New York Times, dives into the changing priorities of American CEOs. He discusses how corporate leaders are shifting focus from shareholder profits to broader stakeholder interests, driven by demands for corporate responsibility. Sorkin examines the historical evolution of corporate behaviors and the influence of figures like Carl Icahn. He questions the sincerity of this shift amidst ongoing economic concerns and the political climate, particularly in the U.S. and Italy.
AI Snips
Chapters
Transcript
Episode notes
Ford's Wage Increase
- Henry Ford raised wages to $5/day in 1914, doubling the average auto worker's salary.
- He believed employees should afford the cars they built, fostering a simple American bargain.
Community-Minded Corporations
- Investing in employees and communities was ultimately good for business.
- Attracting and retaining employees led to better products and stronger companies.
Shareholder Primacy Emerges
- In the 1970s, shareholders began criticizing managerialism, asserting their ownership and accusing companies of overspending.
- Milton Friedman argued that a business's sole social responsibility was to increase profits.