How JUST is corporate America?
JUST Capital released their latest findings with the Harris Poll. It is based on the beliefs of 17,000 Americans about what makes a “just” corporation. There will be a forthcoming ranking of specific companies in the weeks to come now that Americans have told the researchers what matters most in framing corporate reputation. Americans’ perceptions on “justness” is used as a guide to selection of the most “just” companies. The heart of the study has been about what Americans want business to prioritize and the key finding has been consistent over the years — paying workers a fair and livable wage.
Employers still have a lot to listen to when it comes to what Americans are telling them about how to prioritize the workplace. Here are some of the key findings:
Only 50% say that large companies are promoting an economy that serves all stakeholders.
46% of Americans still believe shareholders continue to be the priority, more so than other stakeholders like employees (37%) and customers (16%)
Americans believe companies are almost twice as likely to have a positive impact on their shareholders than on the financial well-being of their lowest-paid workers (69% vs. 39%, respectively)
Trust in corporations has stayed relatively flat year-over-year – 46% this year vs. 48% in 2019
Despite these unsettling signs that companies can do better in terms of being more just and putting employees first, there were a few high notes that ring optimistically to me:
Americans trust that they themselves have the power to make a difference. When asked how effective people can be if they act together to try to change corporate behavior, a large 87% say their demands can be effective. This is a 16% increase from the last four years. This speaks to the employee activism and civic activism we have seen in 2020 as COVID-19 rates and racial unrest increased and employees made their voices heard by protesting and speaking truth to power.
Encouragingly, 80% of Americans believe that companies can be a force for good when it comes to societal change. Complementarily, 70% of Americans want CEOs of large companies to take a stand on important social issues (an almost 10% increase from last year). This fits with the CEO activism that I predicted and researched over the past five years and which has resounded loud and clear. CEOs have not remained silent. They’ve taken on the thorniest issues of the day.
Another positive sign: More Americans than ever (37%) believe companies are prioritizing workers this year (up 17 percentage points from last year). Many companies responded to COVID-19, unemployment and racial discrimination in ways that Americans agreed with. When it comes to COVID-19 and how Americans feel about how companies responded, researchers at JUST Capital found that a majority of Americans (58%) believe America’s largest companies have demonstrated leadership. And they have.
JUST Capital’s executive summary spells out what has been building this year and over time: “In the midst of massive intersecting health, economic, and social crises, the key takeaway emerging from both our annual survey and our ongoing polling initiatives conducted throughout this year is that the public is increasingly looking to corporate America to take action as trust in government wanes.” Government could be doing more but corporate America has stepped into the void to help. Some companies deserve the reputations they have built by shaping fair and equitable workplaces. A good thing for us all.
And thanks to the folks at JUST Capital who make a difference by asking Americans what they think and providing this research to keep us all accountable to what really matters.