Corporate giants at Davos give up the game

The World Economic Forum begins its 54th annual confab of CEOs and billionaires this week in Davos, Switzerland. Among its attendees are some who attended Trump’s inauguration yesterday to kiss his derriere, and then promptly private-jetted to the Swiss Alps.

Since its inception, the Davos confab has justified itself — and thereby sought to justify global corporate capitalism — by embracing “corporate social responsibility.”

The basic idea is that big global corporations can — and should — be good for everyone. Sure, they may make a few CEOs and big shareholders fabulously wealthy. But they can and should also protect the planet and spread their financial gains.

Hence, Davos attendees’ annual commitments, in myriad sessions and presentations, to “ESG” (environmental, social, and governance — that is, sustainability), “DEI” (diversity, equity, and inclusion), and global and social responsibility in general.

In recent years, Davos has become a choice venue for splashy corporate announcements of such commitments.

In 2020, Marc Benioff of Salesforce issued a goal to plant a trillion trees. The same year, Larry Fink of BlackRock (which manages more than $10 trillion in investments) announced a series of initiatives to invest in ways that better protect the environment. The CEOs of JPMorganChase and Goldman Sachs trumpeted their Net-Zero Banking Alliance.

Other corporate poobahs have used the venue to make grand promises to share profits with their workers, their communities, and the less fortunate around the world. Jamie Dimon, then head of the Business Roundtable, touted his and the Roundtable’s pledges to their workers, their neighborhoods, and the nation as a whole.

But wait. These are exactly the goals Trump and MAGA have railed against, calling them “woke” capitalism.

Now that CEOs of the largest corporations in the world are demonstrating cringe-worthy cowardice when it comes to all things Trump, what’s to become of corporate social responsibility?

Presto! Davos has gone through an ideological cleansing. This time, few if any sessions will be devoted to ESG or DEI. The perennial theme of “corporate social responsibility” has almost vanished.

The CEOs who used to trumpet their corporate social responsibility won’t be doing so this year. (BlackRock’s Fink has already expressed regret over becoming the face of ESG). JPMorganChase and Goldman Sachs have departed their Net-Zero Banking Alliance.

Instead, after years of calling for “responsible” global corporate capitalism, the CEOs gathering in Davos are now openly focusing on their bottom lines.

In other words, the jig is up. The pretense is over. The blather about corporate social responsibility is revealed for what it really is and always has been — PR designed to make the public believe that big global corporations care about anything other than making as much money as possible, as soon as possible.

I, for one, think this is a good thing.

All the artifice about corporate responsibility, echoed year after year at Davos and by the Business Roundtable and in business schools, gave lawmakers who wanted one an excuse to sit on their hands, because, they’d say, big global corporations can be trusted to do what’s right.

The truth is, they can’t. They never could. They won’t sacrifice shareholder returns to tackling climate change or social injustice.

Anyway, these are jobs for governments responsible to the people, not for corporations responsible to shareholders.

The Trump regime won’t do a damned thing about these problems, of course. If anything, it will take us and much of the world backward. (Trump is expected to appear at Davos via videoconference, and god knows what he’ll say.)

But at least we will know where the blame lies. And we will have the chance in future years — I fervently hope — to elect governments that tackle them head-on.

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Robert Reich is a professor of public policy at Berkeley and former secretary of labor. His writings can be found at https://robertreich.substack.com/