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Week in Review-EY Report: People Are No. 1 Priority, BOA Chair Touts Stakeholder Capitalism on Fox

Here’s an update on news about Stakeholder Capitalism over the last week. EY Linked in poll finds people are the No. 1 priority…New Council on Inclusive Capitalism supported by the Vatican…Brian Moynihan, Bank of America co-chairman, touts Stakeholder Capitalism on Fox business news… McKinsey study says Stakeholder Capitalism and Digitalization rank among the biggest trends for 2021…. …Coalition for Inclusive Capitalism issues formal framework…Biden Administration will rescind Trump Administration restrictions on ESG investments.
 
Here’s an update on the latest news in the general media about Stakeholder Capitalism and human capital management issues.
 
EY SurveyEY Stakeholder Capitalism Poll: People Are the No. 1 Path to Long-Term Value Creation
In a recent LinkedIn poll conducted by EY with over 10,000 responses, people top the planet, governance, and prosperity as the most critical issue to address. When asked which Stakeholder Capitalism metric is most urgent on the road to long-term value creation, the answers were: People, 53%; Planet, 26%; Prosperity, 13%; Governance, 9%.
 
Council for Inclusive Capitalism With the Vatican Is Launched
The Council for Inclusive Capitalism with the Vatican is a new partnership between some of the world's largest investment and business leaders and the Vatican. “It signifies the urgency of joining moral and market imperatives to reform capitalism into a powerful force for the good of humanity. Under the moral guidance of His Holiness Pope Francis and His Eminence Cardinal Peter Turkson, who leads the Dicastery for Promoting Integral Human Development at the Vatican, and inspired by the moral imperative of all faiths, the Council invites companies of all sizes to harness the potential of the private sector to build a fairer, more inclusive, and sustainable economic foundation for the world.” 
 
According to an announcement, “The Council is led by a core group of global leaders, known as Guardians for Inclusive Capitalism, who meet annually with Pope Francis and Cardinal Turkson. These leaders represent more than $10.5 trillion in assets under management, companies with over $2.1 trillion of market capitalization, and 200 million workers in over 163 countries. The organization challenges business and investment leaders of all sizes to embrace the Council's guiding principles and make public commitments to act on them. These collective actions are intended to lead to systemic change by making capitalism a greater force for inclusivity and sustainability. Watch a video of the Guardians discussing the Council's mission here.  
 
BOA Chairman Makes the Case for Stakeholder Capitalism 
The Barrons Business Roundtable on Fox Business News recently featured Brian Moynihan, Bank of America Chairman and CEO and a passionate advocate for Stakeholder Capitalism. While Moynihan was asked mostly about the environmental aspects of Stakeholder Capitalism, he also touched on some of the people issues as well. 
 
McKinsey & Company Trends Report— Stakeholder Capitalism Comes of Age…The Digital Revolution Arrives...
In a study that looked at 615 large- and midcap US publicly listed companies from 2001 to 2015, McKinsey found that those with a long-term view—something that’s a core of stakeholder capitalism—outperformed the rest in earnings, revenue, investment, and job growth. And a McKinsey Global Survey in February 2020 found that a majority of the executives and investment professionals surveyed said they believed that environmental, social, and governance (ESG) programs already create short- and long-term value and will do so even more five years from now.
 
The report, by Kevin Sneader and Shubham Singhal predicts that: 
*The digitalization of the work force will accelerate.
*The future of work has arrived head of schedule because of the work-from-home movement.
*A return of confidence will unleash a consumer rebound. 
*Leisure travel will return before business travel.
*Shopping behaviors will be altered forever.
*There will be a wave of innovation and business startups.
 
Coalition for Inclusive Capitalism Issues Formal Framework 
A coalition of prominent business leaders, academics, lawyers, unions, and others dedicated to principles aligned with Stakeholder Capitalism, have issued a report to establish the principles and framework for implementation. Beyond recommendations for business, it also urges the active involvement of government to promote these principles.
 
Here are some highlights from the report:
“Government should work with business and labor to establish new sets of rules for our modern economy to eliminate incentives for short-term financial engineering, broaden corporate stakeholders and define a corporate purpose to which businesses’ performance can be accountable to. 
“Federal and state laws should facilitate the ability of large corporations to formally broaden the stakeholders and communities to which they are responsible beyond stockholders. This can include encouraging corporations to become public benefit corporations as well as encouraging corporations to make themselves responsible for demonstrating their material and positive impact on society and the environment. 
“The benefit corporation model can task boards with the purpose of creating value, weighing needs and allocating resources for all corporate stakeholders including workers, not just shareholders. 
“Encourage more Inclusive Capitalism to restore balance to the economy while also maintaining fair cash compensation and benefits for workers. 
“Equitably reward all workers for the value they create and empower workers by protecting their rights to negotiate for higher wages and better working conditions on an equal basis with their employers. 
“Companies should report on their commitment to workers.
“Give workers a stronger voice in the corporation to ensure that good jobs provide good wages…” 
 
 
Biden Administration Moves Quickly to Support ESG Investing
A Barrons article by Lewis Braham reports that “The Biden administration will start walking back a controversial Department of Labor rule that would curb the use of ESG, or environmental, social, and governance, funds in 401(k) retirement plans, though it may take as long as 18 months to undo it completely.” 
 
Separately, the Securities and Exchange Commission announced that Satyam Khanna will serve as Senior Policy Advisor for Climate and ESG in the office of Acting Chair Allison Herren Lee. In this new role, Khanna will advise the agency on environmental, social, and governance matters and advance related new initiatives across its offices and divisions.
 
Based on the administration’s latest moves, one can expect the SEC to add to disclosure requirements for ESG (Environmental, Social, and Governance) issues, including human capital, and that other departments will favor ESG policies.

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Master the Principles of Stakeholder Capitalism And Implementation Through Enterprise Engagement

Education, Certifications, and Information to Activate
Stakeholder Capitalism Available Nowhere Else
A complete learning, certification, and information program and a course syllabus for educators.
 
Training and Certification
Enterprise Engagement Alliance Education: Certified Engagement Practitioner; Advanced Engaged Practitioner, and Certified Engagement Solution Provider learning and certification programs on how to implement Stakeholder Capitalism principles at the tactical level. 
 
International Center for Enterprise Engagement: The only training and certification program for ISO 30414 human capital reporting and ISO 10018 quality people management certification. 
 
The EEA offers a complimentary course syllabus for educators.
 
A CEO's Guide to Engagement Across the Enterprise cover
Join the EEA to begin your certification process or see our other resources below. 
Or contact Bruce Bolger; Bolger@TheICEE.org; 914-591-7600, ext. 230 to learn more.
 
THE ONLY BOOKS ON STAKEHOLDER CAPITALISM IMPLEMENTATION
Enterprise Engagement for CEOs:The Little Blue Book for People-Centric Capitalists
This is the definitive implementation guide to Stakeholder Capitalism, written specifically to provide CEOs and their leadership teams a concise overview of the framework, economics, and implementation process of a CEO-led strategic and systematic approach to achieving success through people.  (123 pages, $15.99)

Enterprise Engagement: The Roadmap 5th Edition
The first and most comprehensive book on Enterprise Engagement and the new ISO 9001 and ISO 10018 quality people management standards. Includes 36 chapters detailing how to better integrate and align engagement efforts across the enterprise. (312 pages, $36.) 

OTHER RESOURCES TO ACTUALIZE STAKEHOLDER CAPITALISM 
Communities: The  Enterprise Engagement Alliance and Advocate and the  Brand Media Coalition free resource centers offering access to the latest research, news, and case studies; discounts, promotions, referrals, and commissions, when appropriate to third-party solution providers from participating coalition solution provider members.
 
Enterprise Engagement Resources:  EEXAdvisors.com provides the only curated online marketplace to access hundreds of solution providers in all areas of human capital management and enterprise engagement throughout the world. 

Online Overview:  
10-minute short course: click here for a 10-minute introduction to Enterprise Engagement and ISO standards from the Coggno.com learning platform.

Services: 
•  The Engagement Agency at EngagementAgency.net, offering: complete support services for employers, solution providers, and technology firms seeking to profit from formal engagement practices for themselves or their clients, including Brand and Capability audits for solution providers to make sure their products and services are up to date.
•  C-Suite Advisory Service—Education of boards, investors, and C-suite executives on the economics, framework, and implementation processes of Enterprise Engagement. 
•  Speakers Bureau—Select the right speaker on any aspect of engagement for your next event.
•  Mergers and Acquisitions. The Engagement Agency’s Mergers and Acquisition group is aware of multiple companies seeking to purchase firms in the engagement field. Contact Michael Mazer in confidence if your company is potentially for sale at 303-320-3777.

Enterprise Engagement Benchmark Tools: The Enterprise Engagement Alliance offers three tools to help organizations profit from Engagement. Click here to access the tools.
•  ROI of Engagement Calculator. Use this tool to determine the potential return-on-investment of an engagement strategy. 
•  EE Benchmark Indicator. Confidentially benchmark your organization’s Enterprise Engagement practices against organizations and best practices. 
•  Compare Your Company’s Level of Engagement. Quickly compare your organization’s level of engagement to those of others based on the same criteria as the EEA’s Engaged Company Stock Index.
•  Gauge Your Personal Level of Engagement. This survey, donated by Horsepower, enables individuals to gauge their own personal levels of engagement.

For more information, contact Bruce Bolger at Bolger@TheEEA.org, 914-591-7600, ext. 230.

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