Have ‘Woke’ Policies Driven Customers Away?

U.S. markets have recently surged as companies shifted from stakeholder capitalism back to shareholder-focused priorities. Stakeholder capitalism, promoted by Klaus Schwab and the World Economic Forum, emphasizes serving all stakeholders, diverging from traditional profit-driven models. Pressure from institutions had led U.S. companies to adopt ESG and DEI programs, prioritizing social causes over traditional business goals.

Join us in this slideshow as we explore the impacts of ESG-driven tactics.

ESG critics have argued that such initiatives have drained resources, failed to deliver shareholder value, and left society polarized, with inflation rising and confidence declining.

Companies are now largely abandoning ESG and DEI programs, with firms like Harley-Davidson and Tractor Supply refocusing on core operations, boosting investor confidence. Companies like Apple and Tesla have championed ESG goals while relying on unsustainable practices like mining in poor conditions, often involving Chinese firms and pollution.

Larry Fink, CEO of BlackRock, has nuanced views on ESG, admitting its flaws. Critics argue ESG enriches corporations but burdens average Americans with inflation and inequality.

Fink stated, “Stakeholder capitalism is not about politics,” adding, “Divesting from entire sectors – or simply passing carbon-intensive assets from public markets to private markets – will not get the world to net zero.”

Fink added, “It will require a combination of government and private sector and that’s just not happening.”

Ben Cushing, Fossil-Free Finance Campaign Manager with the Sierra Club, stated, “There’s not much to see here other than more hot air from a would-be climate leader.”

Texas and 10 other Republican-led states sued BlackRock, State Street, and Vanguard, accusing them of violating antitrust laws through climate activism that reduced coal output. The lawsuit claims the firms used their market power and climate advocacy to pressure coal companies to cut emissions by over 50% by 2030, raising utility costs.

BlackRock was also accused of misleading investors by using non-ESG funds to advance climate goals instead of focusing solely on shareholder value as promised.

The states are seeking to block the firms from influencing shareholder resolutions that limit coal production and request civil fines for violating antitrust and consumer laws.