In 2019, the Business Roundtable redefined the purpose of a corporation from maximizing shareholder value to serving various “stakeholders.” In recent years, groups like the World Economic Forum and others that prop up ESG have built upon this redefinition.
Who are these “stakeholders”? Basically everyone except shareholders.
With corporate executives spurred on by the Biden administration and others working from this new definition of “stakeholder capitalism,” many funds that now include ESG considerations have been able to get past financial regulators and investors with investments focused less on profitability and more on funding the environmental and social agenda of the left.