here is the one page accountable capitalism Act. and the original question.
For much of their biotory. American corporations thed to bal anoe the intenests ef all of their stakeholders, ineluding employees, customen, business partners, and shatcholders. But in the 19kO, corporations adopted the belief that theit only legitimate and legal purpose was "maximizing shareholler valoe." By 1997, the Business Roendtable declared that the "principal objectrve of a business enterprise is to gencrate economic returns to its owners." This shift is a root cause of many of Amcrica's fundamental cconomic problems. In the early 19xos, America's biggest companies dodicated less than half of their profits to sharcholders and ncinvested the rest in the conpany. But over the last docade, big American comparies have dedicated 93 of their carnings to sharcholders. That has redirected trillons of dollars that might have otherwise gone to workers or loeg-term investments, with prodictable realts. Since the advent of sharcholder value maximiraticn, worker productivity has risen steadily but real wages for the median worker have been hoyikally flat and the share of national income that goes to workers has grorped markedly. Big American companics have chronically gindcreinkcstgd, opening the door fo forcigh competitons. Because 84N of American-held shares are owned by the top 10R6 of our richest houscholds, while mure than 50 s. of Amencan houncholds own no stock at all. corporate America's commitment to "maximzzing sharcholdcr returm" is a commitasent to making the richest Amencans even richer at all conts. There is aa argent nect to retum lo the era when American corporations produced beoad-based growth that helpod workers and sharcholders alike. The Accoentable Capitalism Act provides: - Very large A merican opmorations mut obtain a foderal charter as a Ninitod States morporation, which obligates company ditocters to consider the interets of all corporte sakchokkes: American corporations with more than S1 billion in anpual revenoc mast obtain a fedcral charter from a newly formed Office of Uaited States Corporations at the Departmi ht of Commerce. The new federal charter obligates compamy directors to consider the intereits of all corporate stakeholders - including cmploybes, customen, sharcholders, and the communities in which the compuny operates. This approoch is derived from the thriving bencfir coeporation model that 33 states and the District of Columbia have adopted and that companies like Patagonia, Danooe North America, and Kickatarter have embraced with strong fesults. - The boandi of Unitod States comoptions must include subitantial mmployse nuticipationg, Bomowing from the successful approach in Germany and other devcloped cconomies, a United States corporation mest cnsure that no fewer than 40% of its directons are selected by the corporation's employoes. - Sales of company shares by the directors and officers of Linited Stanes corporations anc aegtrickal; Top corporate executives are now compencated moctly in campany ecsefy, which gives them hage financial incentives to focus exclusively on sharcholder rerums. To ensure that they are focused on the long-term interests of all corporate stakeholden, the bill prohibits directon and oflicen of United States comerations from selling company shares within five years of roceiving them or within three years of a conpany stock baybuck. - United Siates comparations mast obtain sharchalder and Roand apemal forall political expendinires: Drawitg on a proposal from John Bogle, the founder of the investment compony Vanguand, United Stafes curporations mast roocive the approval of at least 75% of their Gharcholders and 75% of their dirocton before engaging in political expenditurcx. This ensures any political expenditures benefit all corporate stakeholders. Altorncys Gencral are authorized to submit petitions to the Otfice of United States Corporations to revoke a Linited States corporation's charter. If the Director of the Oftice finds that the corporation has a history of egregous and repeated illegal conduct and has failed to take meaningful sleps to address its problemo, she muy grant the petition. The company's charter would then be revoked a year later-giving the conpony time before ins charter ia revoked to make the cate to Congress that it should retain its charter in the same or in a modified form. pac can inagne - evolod bath prase and harsh cibcism. Discussion: After reading the act, please discuss the alignenent of this proposed legislation with Conscious Capitalism. How is the act within the spirit of cC? Are there aspects of CC not included bere? What are the pros of the bill? What are the cons? For much of their biotory. American corporations thed to bal anoe the intenests ef all of their stakeholders, ineluding employees, customen, business partners, and shatcholders. But in the 19kO, corporations adopted the belief that theit only legitimate and legal purpose was "maximizing shareholler valoe." By 1997, the Business Roendtable declared that the "principal objectrve of a business enterprise is to gencrate economic returns to its owners." This shift is a root cause of many of Amcrica's fundamental cconomic problems. In the early 19xos, America's biggest companies dodicated less than half of their profits to sharcholders and ncinvested the rest in the conpany. But over the last docade, big American comparies have dedicated 93 of their carnings to sharcholders. That has redirected trillons of dollars that might have otherwise gone to workers or loeg-term investments, with prodictable realts. Since the advent of sharcholder value maximiraticn, worker productivity has risen steadily but real wages for the median worker have been hoyikally flat and the share of national income that goes to workers has grorped markedly. Big American companics have chronically gindcreinkcstgd, opening the door fo forcigh competitons. Because 84N of American-held shares are owned by the top 10R6 of our richest houscholds, while mure than 50 s. of Amencan houncholds own no stock at all. corporate America's commitment to "maximzzing sharcholdcr returm" is a commitasent to making the richest Amencans even richer at all conts. There is aa argent nect to retum lo the era when American corporations produced beoad-based growth that helpod workers and sharcholders alike. The Accoentable Capitalism Act provides: - Very large A merican opmorations mut obtain a foderal charter as a Ninitod States morporation, which obligates company ditocters to consider the interets of all corporte sakchokkes: American corporations with more than S1 billion in anpual revenoc mast obtain a fedcral charter from a newly formed Office of Uaited States Corporations at the Departmi ht of Commerce. The new federal charter obligates compamy directors to consider the intereits of all corporate stakeholders - including cmploybes, customen, sharcholders, and the communities in which the compuny operates. This approoch is derived from the thriving bencfir coeporation model that 33 states and the District of Columbia have adopted and that companies like Patagonia, Danooe North America, and Kickatarter have embraced with strong fesults. - The boandi of Unitod States comoptions must include subitantial mmployse nuticipationg, Bomowing from the successful approach in Germany and other devcloped cconomies, a United States corporation mest cnsure that no fewer than 40% of its directons are selected by the corporation's employoes. - Sales of company shares by the directors and officers of Linited Stanes corporations anc aegtrickal; Top corporate executives are now compencated moctly in campany ecsefy, which gives them hage financial incentives to focus exclusively on sharcholder rerums. To ensure that they are focused on the long-term interests of all corporate stakeholden, the bill prohibits directon and oflicen of United States comerations from selling company shares within five years of roceiving them or within three years of a conpany stock baybuck. - United Siates comparations mast obtain sharchalder and Roand apemal forall political expendinires: Drawitg on a proposal from John Bogle, the founder of the investment compony Vanguand, United Stafes curporations mast roocive the approval of at least 75% of their Gharcholders and 75% of their dirocton before engaging in political expenditurcx. This ensures any political expenditures benefit all corporate stakeholders. Altorncys Gencral are authorized to submit petitions to the Otfice of United States Corporations to revoke a Linited States corporation's charter. If the Director of the Oftice finds that the corporation has a history of egregous and repeated illegal conduct and has failed to take meaningful sleps to address its problemo, she muy grant the petition. The company's charter would then be revoked a year later-giving the conpony time before ins charter ia revoked to make the cate to Congress that it should retain its charter in the same or in a modified form. pac can inagne - evolod bath prase and harsh cibcism. Discussion: After reading the act, please discuss the alignenent of this proposed legislation with Conscious Capitalism. How is the act within the spirit of cC? Are there aspects of CC not included bere? What are the pros of the bill? What are the cons
