in

2024 election won’t be a referendum on woke capitalism

2024 election won’t be a referendum on woke capitalism
Announcement


Announcement
Announcement

The main proponents of attacks on “woke capitalism,” like Florida Governor Ron DeSantis, saw their presidential campaigns flame out. Paul Hennessy—SOPA Images/LightRocket/Getty Images

Good morning.

It’s remarkable how quickly the attack on “woke capitalism” has faded from the U.S. political scene. The two main attackers—Gov. Ron DeSantis and Vivek Ramaswamy—have retreated ingloriously from the playing field. Nikki Haley never carried this particular spear. And Donald Trump may sympathize, but he has other, more pressing, battles to fight.

That’s not to say the backlash is over. Red state attorneys general continue their fight against investment funds using ESG screens. Conservative legal groups continue their attack on companies adopting explicit racial guidelines in decision making. And hordes of social media warriors stand ready to attack the next brand daring to follow in the footsteps of Bud Light.

But the notion that the 2024 election is going to be a referendum on companies that want to help people and planet is gone. And no one should be surprised. “Make Quarterly Earnings Great Again” is a rallying cry that only resonates with high speed traders and private equity turnover artists. Running companies for the benefit of society is not just the right thing to do; it’s good for shareholders in the long run.

So where does that leave us? ESG has lost its luster—in part because it was an ungainly amalgam of ideas to begin with. “Greenwashing” and “purpose-washing” are out of fashion—because the public relations downside may be as great as the upside. And diversity efforts have been dialed back from the fevered pitch of 2020. But the underlying forces driving business to pay more attention to social impact have not gone away. In a world where human capital is more valuable than physical capital, businesses must inevitably become more human. 


And check out this week’s episode of Leadership Next, in which Michal and I interview Roelof Botha, who is not CEO but rather “senior steward” of Sequoia Capital, an investment firm that Botha says helped build companies that now make up 27% of the value in the NASDAQ. Among other things, we asked Botha whether the AI boom was a bubble:

The AI wave rivals the internet and it rivals cloud computing and it rivals mobile, and it really benefits from all of those and I don’t think it’s hype. I promise you it will exceed our expectations in years to come. It is transformative.”

You can listen on Apple or Spotify.

More news below. 

Alan Murray
@alansmurray

alan.murray@fortune.com

Announcement

TOP NEWS

Disney invests in the metaverse

The Walt Disney Company will invest $1.5 billion in Epic Games, the developers of the video game Fortnite. Epic will now feature Disney’s characters in its game, which helped popularize the idea of the “metaverse.” Epic Games investors also include Sony and Tencent; the latter owns about 40% of the game developer. Bloomberg

Alibaba’s rocky restructuring

Alibaba is “not in a hurry” to pursue IPOs of its logistics and grocery store divisions, chairman Joe Tsai told analysts Wednesday. “Market conditions currently are just not in a state where we believe we can really truly reflect the true intrinsic value of these businesses,” Tsai said. Alibaba shares fell over 6% in Hong Kong trading after the e-commerce company reported disappointing revenue for the last quarter of 2023. Fortune

Softbank’s profit

Softbank reported over $6 billion in quarterly net income, its first profit after four consecutive quarters of losses. The profit, which came in far above analyst expectations, was driven by the company’s Vision Fund, which posted its largest gain since March 2021. Softbank’s shares rose 11% on Thursday after a bullish earnings forecast from Softbank-owned chip designer Arm. CNBC

AROUND THE WATERCOOLER

Drake’s nude photos expose big moderation problems on X, but Elon Musk is cheering the downloads by Kylie Robison

Polestar’s CEO has identified a major flaw in the EV market—and it’s bad news for customers who have already bought in by Eleanor Pringle

Nayib Bukele is an autocrat, not a Bitcoin savior by Leo Schwartz

Most workers feel positive about return-to-office mandates—but the office just isn’t ready for them, Cisco study shows by Orianna Rosa Royle

Billionaire investors see an ‘existential crisis’ and ‘very, very ugly market’ in commercial real estate—and Moody’s just downgraded a key regional bank to junk status by Will Daniel

Danish wind giant’s abysmal 3 months have a lot to do with America, ‘the most painful’ part of its portfolio by Prarthana Prakash

Announcement

This edition of CEO Daily was curated by Nicholas Gordon. 





Source link

Announcement

What do you think?

Written by Politixia

Announcement
Announcement

Leave a Reply

Your email address will not be published. Required fields are marked *

Announcement
Ukraine and Israel Aid Bill Faces Another Hurdle as Divided G.O.P. Demands Changes

Ukraine and Israel Aid Bill Faces Another Hurdle as Divided G.O.P. Demands Changes

The FCC says AI voices in robocalls are illegal : NPR

The FCC says AI voices in robocalls are illegal : NPR