In recent years, American businesses have begun shifting their focus back to shareholder value after a decade dominated by stakeholder capitalism. This transition has gained momentum following the 2019 Business Roundtable's statement advocating for a broader corporate purpose, which many critics now view as a public relations strategy rather than a genuine commitment to change [d7b719b1]. The renewed emphasis on shareholder interests aligns with Milton Friedman's assertion from 1970 that the primary responsibility of business is to increase profits. This perspective has been echoed by influential figures like Anson Frericks, who argues that the push for stakeholder capitalism, largely promoted by Klaus Schwab and the World Economic Forum, has not proven to be true capitalism [3bdb56b1].
The U.S. stock markets and investor confidence have surged since Donald Trump's reelection, reflecting a broader acceptance of traditional capitalist principles. Notably, U.S. GDP has grown 16 times since 1975, compared to Europe's 11 times, and per capita income in the U.S. is nearly double that of Europe [3bdb56b1]. Amidst this backdrop, companies have faced increasing pressure to adopt Environmental, Social, and Governance (ESG) and Diversity, Equity, and Inclusion (DEI) initiatives, which some argue have led to financial losses. In response, firms like Tractor Supply and Harley-Davidson have eliminated these programs, signaling a potential market shift back to traditional capitalism [3bdb56b1].
While the Business Roundtable's 2019 statement aimed to prioritize stakeholders, many CEOs continued to prioritize shareholder interests during the COVID-19 pandemic, leading to skepticism about their commitment to change. Studies indicate that despite promises of a more inclusive corporate approach, layoffs and profit maximization remained prevalent, reinforcing the notion that the focus on stakeholder capitalism may have been more about optics than substantive change [d7b719b1]. As the economic landscape evolves, the question remains whether this shift back to shareholder value will lead to a more equitable distribution of wealth or simply reinforce existing inequalities.