Forbes’ latest: employees are more vital than shareholders

Well, this is HUGE.

And coming from Forbes magazine which I regard as ultra capitalistic in philosophy – cut taxes, don’t raise minimum wage, let the free market do its stuff.

“For the first time, employees are considered companies’ most important stakeholders for long-term success—three times more important than shareholders.”

“Employees Are More Vital To A Company’s Success Than Shareholders, New Survey Finds”, Forbes, Kristin Stoller, May 20, 2021.

I’m surprised I don’t see this article being quoted in other news outlets because this is a shocking survey. I never thought I would ever read this. Who did the survey talk to?

The article is worth reading because it highlights the changing employee attitudes toward environmental, social and governance issues. Gen Z and Millennials regard these issues as very important, more so than Gen X and the Boomers.

“This stems from the high levels of trust workers have in their CEOs and companies. Some 77% believe their employer is the most trustworthy institution, more than government (56%) and media (51%), according to the report.

Though the report shows that businesses are seen as doing better than the government across all societal challenges—including improving healthcare systems, guarding information quality and addressing systemic inequalities—those surveyed say there’s still more CEOs can do. Ensuring companies pay their fair share of taxes, reduce their carbon footprints and achieve gender and racial pay equity are at least two times more important than increasing share price or profits, they say.”

“Employees Are More Vital To A Company’s Success Than Shareholders, New Survey Finds”, Forbes, Kristin Stoller, May 20, 2021.

Although in reading that, I wonder if the trust is misplaced or a bit naïve. It remains to be seen if CEOs and their senior executives have earned that trust.