Lucian Bebchuk and Roberto Tallarita’s op-ed “‘Stakeholder’
Talk Proves Empty Again” (Aug. 19) is probably correct,
as far as it goes. On its face, the Business Roundtable’s statement
is far from having been meaningfully implemented. Market pressures
from investors to sustain profits are substantial.
On the other hand, progress, while glacial, is occurring and the
Business Roundtable’s statement may have been a pull.
Institutional investors are now rattling the cage in favor of
recognizing stakeholder values such as wages, working conditions
and environment. Major investors are now with policy positions of
their own, making it clear that they will, in the future, take
account of what companies may or may not be doing regarding
stakeholders. Public pressure from consumers to rectify some of
the problems and inequalities of the past is also mounting.
While I haven’t done the field research, I have been watching
these events and participating in them one way or another for more
than 40 years. I think I can speak as an honest critic and
adviser. Accordingly, I am less dubious of the future than are
Messrs. Bebchuk and Talarita.
In the end, I count on mounting public and institutional pressures
to begin to address these problems, perhaps at some sacrifice of
immediate shareholder value, but in favor of longer-term value and
values.
Ira M. Millstein
New York
Mr. Millstein is adjunct professor at Columbia Business School and
Law School, where he is also founding chair of the Millstein
Center for Global Markets and Corporate Ownership.
Appeared in the August 24, 2021, print edition.