US corporate titans to give staff same priority as shareholders

BOSSES of some of America’s biggest companies including Coca-cola, Apple and Amazon have promised to put staff and the environment on a par with shareholders amid attacks from Democratic presidential candidates.

More than 180 chief executives have signed a statement by the lobby group Business Roundtable promising to end the principle of “shareholder primacy” that has long been the basis of American capitalism.

The move comes ahead of this week’s G7 meeting in France, where rebuilding trust in the economic system with more inclusive ways of doing business is expected to be high on the agenda.

While the US economic model has “raised standards of living for generations”, the letter reads, “many Americans are struggling. Too often hard work is not rewarded, and not enough is being done for workers to adjust to the rapid pace of change in the economy. If companies fail to recognise that the success of our system is dependent on inclusive long-term growth, many will raise legitimate questions about the role of large employers.”

As well as looking after the needs of shareholders, the statement said companies should be committed to delivering value for customers and investing

‘Too often hard work is not rewarded and not enough is done for workers to adjust to the rapid pace of change’

in their workforce to “foster diversity and inclusion, dignity and respect”.

Corporations should also deal “fairly and ethically” with suppliers, “protect the environment” and support “the communities in which we work’,’ read the statement, which was also signed by the heads of Boeing, Citigroup and Johnson & Johnson. The intervention came as Left-wing candidates critical of Wall Street such as Bernie Sanders and Elizabeth Warren jostle to become the Democractic nominee for the 2020 presidential election.

While unemployment in the US has fallen below 4pc in recent years, real wages are stagnant and popular concern about the environment and inequality is mounting.

Jamie Dimon, JP Morgan chief who is chairman of Business Roundtable, said: “The American dream is alive, but fraying. Major employers are investing in their workers and communities because they know it is the only way to be successful over the long term.”

Other signatories to the letter include Amazon’s Jeff Bezos, Larry Fink of Blackrock and BP chief Bob Dudley.

Theresa May made overhauling boardrooms a key plank of her domestic agenda upon becoming prime minister but plans to put workers on boards and give shareholders a binding vote on bosses’ pay were watered down.