October 04, 2019
"Commitments are hollow if they're not accompanied by tangible action that provides real benefits to workers and other stakeholders"
Senator Warren Asks CEOs to Honor Their Commitments to 'Promote an Economy that Serves all Americans'
"Commitments are hollow if they're not accompanied by tangible action that provides real benefits to workers and other stakeholders"
Washington, DC - United States Senator Elizabeth Warren
(D-Mass.) sent letters to the CEOs of Amazon, Walmart, United Airlines, General
Motors Company, JPMorgan Chase, BP, AT&T, Comcast, Cigna, and Union
Pacific. These ten CEOs are among 181 CEOs who recently signed a pledge on
behalf of their companies to follow Business Roundtable's (BRT) new Statement
on the Purpose of a Corporation, and "commit to deliver value to
all" stakeholders, including workers, "for the future success of our
companies, our communities and our country." The letters ask for tangible
steps each CEO plans to take to implement the BRT principles and also asks
whether each CEO will take steps laid out in the Accountable Capitalism Act,
which Senator Warren and House Assistant Speaker Ben Ray Luján (D-N.M.) announced
today that they would reintroduce later this month.
For most of our country's history, American corporations balanced their
responsibilities to all of their stakeholders -- employees, shareholders,
communities -- in corporate decisions. It worked: profits went up, productivity
went up, wages went up, and America built a thriving middle class. However, in
the 1980s a new idea quickly took hold: American corporations should focus only
on maximizing returns to their shareholders. That had a seismic impact on the
American economy. Over the last decade, big American companies dedicated 93%
of earnings to shareholders, redirecting trillions
of dollars that could have gone to workers or long-term investments. The
result: booming corporate profits and rising worker productivity
have not led to rising wages.
While Senator Warren is encouraged that BRT acknowledged the harm that this
trend inflicts on the economy and that the CEOs, on behalf of their companies,
have pledged to take steps to reverse it, Senator Warren added that,
"commitments are hollow if they're not accompanied by tangible action that
provides real benefits to workers and other stakeholders."
"If you, and the other 181 corporate executives who signed the BRT's
new Statement on the Purpose of a Corporation, plan to live up to the promises
you made, I expect that you will endorse and wholeheartedly support the reforms
laid out in the Accountable Capitalism Act to meet the principles you
endorse," wrote Senator Warren to each of the ten CEOs.Senator Warren asked each CEO to respond to her letter no later than October
25, 2019, regarding their intention to make good on their commitments.
Senator Warren first
introduced the Accountable Capitalism Act in August 2018 to reverse the
harmful corporate trend over the last thirty years that have produced record
corporate profits for American companies but stagnant wages for American
workers. Later in 2018, her legislation gained
momentum in the U.S. House of Representatives as Rep. Luján, then-incoming
Assistant Democratic Leader; Representative Mark Pocan (D-Wis.), co-chair of
the Congressional Progressive Caucus; Representative Stephen Lynch (D-Mass.);
Representative Brendan Boyle (D-Pa.); and Representative Jan Schakowsky
(D-Ill.) introduced companion legislation. Earlier today, she and Assistant
Speaker Luján announced the legislation will be reintroduced in the coming
weeks.
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