A virtual event @ SASE 2020
Monday, July 20th — 11am-12pm EST / 4pm-5pm BST / 5pm-6pm CET
The current pandemic is expected to have a major impact on economies around the world for years to come. In times of crises, economic growth, employment levels, and firm survival tend to become the top priority for politicians and business leaders alike. Other objectives – such as social and environmental sustainability – fall into the background. Indeed, corporate expenditures related to social and environmental initiatives are often considered the first costs that can be cut.
At the same time, the current crisis comes at a moment when companies face increasing societal pressures to become more socially and environmentally responsible. From the Black Lives Matter and ‘Climate Strike’ movements, to the Extinction Rebellion protests, to high-profile academic and civil society projects seeking to develop new theoretical foundations which redefine corporate purpose beyond shareholder value maximisation (see here, here, and here), societal pressures on companies are arguably stronger now than ever before.
Many of these movements see Covid-19 not just as another crisis, but rather a direct result of an unsustainable economic model, and debate has raged over the question whether the processes of global capitalism can be blamed for the quick spread of the virus and the inability of countries to react to it. In this context, various societal actors are seeking to make sure that the post-Covid-19 rebound will be used as an opportunity for a ‘green recovery’ and a ‘Green New Deal’ that will fundamentally change the dominant economic model.
Companies adopting ‘low road strategies’ that focus on producing at low cost to be able to sell at prices that are affordable for financially squeezed customers may certainly benefit from the crisis. Nevertheless, there are signs that many other companies are willing to use the crisis as an impetus to undertake ambitious reforms towards more sustainable business models. Thus, Danone’s shareholders recently voted to turn the company into an ‘Entreprise à Mission,’ thus enshrining in its articles of incorporation a corporate purpose that goes beyond shareholder value. According to its CEO Danone’s shareholders have thus ‘toppled a statue of Milton Friedman.’
The tensions between economic necessities in the context of the post-crisis recovery and public pressures on companies to do more to reconcile them with a broader range of stakeholder interests and goals can be expected to become more prominent still in the years to come. Indeed, given the corrosive impact that the post-2008 Global Financial Crisis phase of austerity has had on public support for the current economic and political order, it may not be an exaggeration to suggest that repurposing the corporation and moving away from a singular focus on shareholder wealth may become a vital question for the future of modern capitalism and democracy.
This year’s Social Sciences for the Real World (SS4RW) session brings together academics and practitioners who deal with the question of the purpose of the corporation in their daily work and will discuss the crucial question whether “repurposing the corporation to save capitalism from itself?” is feasible and desirable.
We seek to bring together – albeit virtually – a panel of academics and interested members of the public to engage in a constructive debate about this crucial issue, and about how social scientists and people in the “real world” perceive them and what they can learn from each other.
Repurposing the Corporation to Save Capitalism from itself?
Speakers:
Erik Breen (International Integrating Reporting Council)
Isabelle Ferreras (Universite Catholique de Louvain)
Rosl Veltmeijer-Smits (Triodos Bank NV)
Jeroen Veldman (Nyenrode)
Chairs: Imran Chowdhury (Wheaton College), Anna Skarpelis (Harvard University)
We would like to encourage participants to send us ahead of the session their general questions on the topic or specific points they would like to see speakers address. This will allow us to get a sense of what may be of most interest to the audience. Please e-mail them to G.Schnyder@lboro.ac.uk with ‘SS4RW question’ in the subject header.
To participate in this Zoom event, please sign up here