The chiefs filled a supposed moral vacuum in Washington and warned against threats to democracy and that they had announced commitments to tackle racial inequality. Many have made it clear in public where they stand on Trump’s approach to the climate crisis and immigration.
There is a new administration in the White House, and on a number of policy fronts, President Joe Biden and Corporate America are more closely aligned. But when it comes to the role that their businesses play in society, business leaders should not go back to their old ways.
“[This] becomes an opportunity to continue that self-reflection, “Deepak Malhotra, a professor of business administration at Harvard Business School, told me.
Why it matters: The public is increasingly relying on companies to make the right calls on political and social issues. According to the Edelman Trust Barometer of 2021 launched earlier this month, business replaced the government as the most reliable institution during the Covid-19 pandemic.
After the riot by Trump supporters storming the U.S. Capitol, a survey of 40 executives conducted by Jeffrey Sonnenfeld of the Yale School of Management found that 96% of respondents believe Trump was charged and to be removed from office.
The same leaders now have a role to play as the accusation process unfolds, Sonnenfeld told me. The trial in the Senate begins on February 9.
“I think they need to proceed formally and informally to pursue accountability,” Sonnenfeld said. “Our system of government is one of the reasons for their business success – and they know it.”
Then there are the looming debates on issues such as climate. Over the past four years, businesses have become accustomed to claiming the leadership garment while the Trump administration has disengaged.
“Affairs suddenly outperformed the government by a wide margin,” Malhotra said.
One given: businesses will be forced to actively pursue social issues simply because of the changing tastes of the consumer. As made clear after the police murder of George Floyd last summer, which brought millions of protesters to the fore, younger customers are increasingly demanding that the brands they support cause like Black Lives Matter; workers ask the same of their employers.
“Businesses were forced to take these issues into account, not specifically because of President Trump, but because of what happened on the streets and in communities and in their own workforce,” Malhotra said.
Keep an eye on this space: normally the role of companies in society will be discussed in the Swiss Alps next week while executives meet at the World Economic Forum in Davos. It is not surprising that the January issue of WEF is a digital affair, although the group hopes to hold a personal event in Singapore this summer.
Talks on the subject, with leaders such as Larry Fink, CEO of BlackRock, Brian Moynihan, CEO of Bank of America, and Marc Benioff, CEO of Salesforce, continue. Watch Before the Bell for highlights.
Do you sell Apple’s 5G iPhone? We’re about to find out
Wall Street is counting on a rush of iPhone 12 sales to boost Apple’s earnings. This week, investors will find out if such predictions come true.
Apple reported earnings after U.S. markets closed Wednesday. Given the company’s 75% share increase over the past year – partly due to anticipation over wild iPhone 12 sales – it will be a major market event.
According to Daniel Ives, an analyst at Wedbush Securities, much depends on demand from China, which puts any comments on the country’s economic return in focus.
“China remains a key component of Apple’s recipe for success, as we estimate that approximately 20% of iPhone upgrades will come from this region in the coming year,” Ives said in a recent customer comment.