CEOs are getting caught in the crossfire of culture wars, especially involving ESG investing. Consultant Bruce Mehlman shares key internal and external strategies for business leaders to consider in this politicized environment. Culture wars are crashing the C-suite, and CEOs need to up their games. For over a decade, progressive activists have urged business leaders to speak out more on social and cultural issues, and many responded. This increased engagement emerged alongside accelerating ESG initiatives reacting to climate change, EU regulation, and geopolitical disruption. Over the past few years, conservative activists started punching back, objecting to what they consider political investing—aka “woke capitalism”—by unelected technocrats who are supposed to focus on maximizing shareholder value rather than signal virtue. CEOs are now caught in the crossfire. And in 2023, these challenges are only getting harder. A record 39 states now boast one-party rule, increasing the likelihood of straight-line partisan legislation at odds with states run by the other party. Congress is again narrowly divided, with both parties looking for populist credit for punishing ideological opposition among “the establishment.” The 2024 presidential campaign is fully underway, with GOP aspirants competing to be most “anti-woke.” The president’s very first veto is imminent […]
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