Regardless of how the market rollercoaster we’re on plays out, the global economy is clearly being fundamentally reshaped. According to many commentators, the possibility of a recession or worse in America and around the world is still real. If tariff-induced inflation gets introduced to the mix, it’s a double whammy for households. And if it accelerates AI adoption, as some think, the pain for workers could compound.
I’ve spent much of the week thinking about what all this means for Just Capital. The argument – captured in this comment by Scott Bessent – that this is all being done to benefit Main Street after decades of neglect warrants careful scrutiny. History teaches us that dislocations invariably tug at society’s fault lines and hit the economically vulnerable (i.e., Main Street) the hardest. Maybe this is different. Overall though, I’m coming to the (admittedly self-serving) conclusion that it makes just company behavior more important, and increases the performance dividend of stakeholder leadership.
Consider this: In the last major market shock during Covid, the most just companies outperformed their peers. From January 31, 2020 through the end of May 2023 the broad based JULCD (the “Just 500”) beat the Russell 1000 by a little over 1% and the Just 100 was up 11.8% over its benchmark. More highly ranked companies also displayed more resilience than their lower ranked counterparts when Covid hit, responding to worker and customer needs more effectively, and bouncing back faster.
Although the current tumult is driven by altogether different causes, I expect just leaders to similarly outshine their rivals (as our index track records suggest). Companies that excel in creating value for all their stakeholders possess greater brand strength, are more long-term growth oriented, prioritize productivity and innovation (including via technology), and are better at attracting and retaining the best people. They have strong cultures, care deeply about their customers, have tighter relationships with local communities and suppliers, and are more adept at navigating social and environmental matters. When market shocks happen, these companies are invariably better positioned. Walmart’s successful customer loyalty program was cited this week as a reason why the company may be more recession-resistant than others (see below for other examples).
Call it what you want – multi-stakeholder capitalism, just capitalism, better capitalism – it’s the kind of leadership that will stand companies in good stead in times of great uncertainty. It’s also the best chance we have of building a better future for America.
Be well,
Martin
Reactions from Trump’s tariffs have run the gamut across companies and investors. Here are just a few from the week.
Ford says they’re “not sweating”, as 80% of their cars are assembled in the U.S., and they’re working with the administration to “help grow jobs here” to assemble even more on U.S. social.
JPMorgan Chase CEO Jamie Dimon responded to the tariffs in his shareholder letter, saying that “the quicker this issue is resolved, the better”.
Levi’s CEO Michelle Gass assembled a task force to figure out potential options for dealing with the impact of tariffs, saying that any price hikes the company makes will be “surgical”.
Walmart is suspected of being more resilient thanks to its growing “Walmart +” program, which drove nearly half the total spend on the company’s website last year. The subscription service could give Walmart a buffer on raising prices.
Outside of specific companies, CNBC created a round-up of thoughts from several top investors and CEOs (some anonymous) on the impact of the tariffs. The BBC also reported that right now, some workers in middle America have a more positive opinion of the tariffs than business leaders.
Lego proceeded with the opening of a new production complex in Vietnam, reportedly undaunted by tariffs against U.S. trading partners.
(Getty Images/ Kayla Bartkowski)
“For the last four decades, basically since I began my career in Wall Street, Wall Street has grown wealthier than ever before, and it can continue to grow and do well. But for the next four years, the Trump agenda is focused on Main Street. It’s Main Street’s turn. It’s Main Street’s turn to hire workers. It’s Main Street’s turn to drive investment, and it’s Main Street’s turn to restore the American Dream.”
CNBC looks at an alarming trend for companies – scammers using bots and generative AI to pose as qualified job applicants for remote jobs, and then, once hired onto a company, installing malware and ransomware on their servers.
Fortune looks at how Atlassian has bucked the return-to-office trend of other tech companies, and in the process, tripled the size of its workforce and nearly doubled the amount of candidates who apply for open roles. Explore the tenets that make their remote workforce possible.
The Guardian looks at marketing’s role in “woke” backlash to corporate activism, saying, “the contradictions of the brand purpose era are most apparent when looked at from the view of the average person. Social progress once came hand-in-hand with economic progress. Now, instead, social progress has been offered as a substitute for economic progress.” Read the full article here.
Bloomberg reports that TikTok is becoming an even bigger bargaining chip in the growing trade war.
Fortune examines some of the strategies CEOs are starting to implement to weather the tariff storm. Yahoo Finance takes a close look at Starbucks in particular, given that the majority of their coffee is imported from some of the countries receiving the highest tariffs. Meanwhile, a small business owner takes to the New York Times opinion section to discuss pricing woes these tariffs create, stating: “Bizarrely, the U.S. government can scramble its tariff policy faster and with less warning than I can change my retail prices. I face a critical business decision and lack the minimal level of certainty to make it.”
Perhaps the most surprising result from our most recent survey was the rise in importance of ethical leadership. The American people, it seems, are craving more morality from their leaders. Doubtless many of you are immediately drawn to think about politics and government, but the importance of moral leadership in business is clearly just as vital.
What does it mean to lead with morality? Probably best to ask Perplexity or Chat GPT. The word itself derives from the Latin ‘moralitas’, meaning manner, character, or proper behavior. Applied to companies, the American people associate it with being transparent, honest, taking responsibility for wrongdoings and in a wider sense, doing right by all stakeholders. The HOW Institute for Society, founded and led by our good friend Dov Seidman, has examined the issue in great detail and comes to a similar conclusion that moral leaders seek truth, uphold ethical standards, and demonstrate humility (among other principles). In their most recent report, they highlight character and trust as being central to “outbehaving” the competition and, in turn, outperforming them, and detail a structure for measuring and scaling such leadership.
In today’s hyper-turbulent world, morality also represents a fixed point by which business leaders can navigate. Such was obvious last week, when we presented the Just Capital inaugural Lifetime Achievement Award to Enrique Lores, President and CEO of HP, Inc. Read more here. In Enrique’s words, “As business leaders, we have a choice. We can follow – or we can lead. We can react to change – or we can shape it. At HP, we are choosing to lead…companies that lead with purpose don’t just endure. They thrive.”
Just leaders have this philosophy in common: they serve a set of consistent, foundational values that guide them over the long term, through good times and bad, through fair weather and foul. We hope you are as inspired by Enrique’s leadership as we are.
Be well,
Martin
PS. If you’re looking for an exploration of morality in a modern context, I’d recommend the BBC’s Moral Maze podcast (it has grappled with morality in business many times).
Mar 27, 2025 12:00 PM
In today’s rapidly changing environment, both investors and consumers are applying new criteria when evaluating companies and their leadership. What do Americans expect from business leaders right now, and how are these expectations reshaping corporate priorities and investment decisions?
Join JUST Capital, alongside Potential Energy, for an exclusive, data-driven discussion that bridges the gap between public sentiment and business strategy, delivering actionable insights based on extensive research with investors, consumers, and market leaders.
(Photo by Adam Hamer)
“When corporate leaders prioritize responsible investment for all stakeholders, like job creation, workforce development like veterans hiring and apprenticeships, and training programs, they contribute to addressing critical challenges such as underemployment, income inequality, and healthcare access, so fewer Americans have to rely on “Renting Tires”.
Axios reports that recent studies are showing that AI is driving a major wedge between the c-suite and employees. Why? Beyond the fears of AI job replacement, many execs are forcing employees to adopt AI tools that workers themselves find aren’t suited to the job, in many cases providing inaccurate answers that require a significant amount of time to correct. Read the full story here.
Business Insider looks at how a push to “dominate AI” across the tech industry is drastically changing the culture of a sector once known for its job security.
HR Brew unveils their DEI tracker, which is keeping a pulse on how companies are rethinking, rebranding, or rolling back their initiatives. Meanwhile, Inc. looks at why small businesses are actually having greater success with their DEI initiatives.
The Wall Street Journal reports that consumer spending is weakening across both rich and poor, luxuries and necessities, at the same time.
This chart comes from The Wall Street Journal, and shows the salary increases that were previously common with a job switch have dropped to their lowest level in years, providing little more income for most people than their current job. Explore the data here.
Just Capital was honored to recognize HP Inc. president and CEO Enrique Lores with the inaugural Just Capital Lifetime Achievement Award at the organization’s 10th anniversary gala, “A Decade of Just Leadership: Celebrating the Best of American Business” hosted at the Nasdaq Marketsite in Times Square. The award was presented by Just Capital board chair Dan Schulman.
The prestigious recognition celebrates Lores’ exceptional leadership and unwavering commitment to responsible business practices throughout his remarkable journey from HP intern to chief executive.
In his acceptance speech on March 12 in New York, Lores reflected on the guiding principle that has defined HP’s approach to business for nearly 85 years: “Doing the right thing by our customers, employees, and communities isn’t just a responsibility – it’s how we succeed.”
The award comes as HP was ranked second on Just Capital’s America’s Most Just Companies list, with Hewlett Packard Enterprise taking the top spot. HPE president and CEO Antonio Neri was also in attendance, having rung the Nasdaq closing bell alongside Schulman earlier in the evening. The top performance of both of these companies in the Just Capital Rankings underscores the enduring legacy of founders Bill Hewlett and Dave Packard’s belief that business success and social responsibility are deeply interconnected.
“Great companies don’t exist in isolation. They are part of something bigger – a network of employees, customers, and communities whose success is deeply interconnected,” said Lores, quoting HP co-founder Dave Packard’s philosophy that “the betterment of our society is not a job to be left to a few; it is a responsibility to be shared by all.”
Lores, who has served as HP’s CEO since 2019, emphasized that his leadership approach has been guided by the conviction that “business success and social responsibility are not separate pursuits. They are deeply connected.”
In closing his acceptance remarks, Lores articulated HP’s forward-looking vision: “The HP Way lives on, not just in our company, but in every leader and organization demonstrating how business should be a force for good. It’s why at HP we aim to become the most sustainable tech company.”
The Just Capital Lifetime Achievement Award represents a significant milestone in recognizing business leaders who exemplify just leadership and prove in practice that just business is better business.
“As business leaders, we have a choice. We can follow – or we can lead. We can react to change – or we can shape it. At HP, we are choosing to lead,” Lores said, reinforcing his belief that “companies that lead with purpose don’t just endure. They thrive.”
Just Capital’s 10th anniversary celebration brought together business leaders committed to creating a more just marketplace that better serves Americans and builds a more prosperous future for all. In addition to the award presentation, the program included a panel discussion with Just Capital co-fonder Paul Tudor Jones, former SEC chair Jay Clayton, and Just board member and chairperson of HPE Pat Russo moderated by MSNBC’s Stephanie Ruhle; remarks from board members Sushmita Banerjee and Roosevelt Giles; and a welcome from Nasdaq’s Jack Cassel.
In the 2025 Rankings of America’s Most Just Companies, HP Inc. demonstrates leading performance on many of the American public’s priority issues such as , offering robust benefits to employees; creating jobs through apprenticeships, veterans hiring policies, and restart programs; and communicating transparently and protecting user data.
Want to see how your company stacks up? Explore Just Intelligence today.
We celebrated our 10-year anniversary this week by hosting a fantastic celebration and fundraising gala at Nasdaq Marketsite in Times Square. Coming almost a decade to the day after our co-founder and former chair Paul Tudor Jones’ TED Talk in Vancouver, it was a great event that brought together some of the most influential voices in corporate leadership to mark a decade of progress by JUST, discuss current market conditions and inspire action.
JUST chair Dan Schulman and HPE president and CEO Antonio Neri, representing this year’s #1 Most JUST Company, got us underway by ringing the closing bell of the Nasdaq. The program that followed featured a lively panel discussion with Paul, former SEC chair Jay Clayton, and JUST board member and chairperson of HPE Pat Russo moderated by MSNBC’s Stephanie Ruhle; remarks from board members Sushmita Banerjee and Roosevelt Giles; a welcome from Nasdaq’s Jack Cassel; and a very moving presentation of the JUST inaugural Lifetime Achievement Award to Enrique Lores, president and CEO of HP, Inc., who personifies all that we represent.
We were joined by so many friends, donors and partners, including our incredible sponsors below. I’m still processing the key takeaways but one thing is clear; in an era of profound change, just business leadership is more important than ever. We will be stepping up our efforts, and if, like me, you believe that the private sector has a critical role to play in building a better future for everyone, we’d welcome your partnership and support.
Be well,
Martin
“For nearly 85 years, HP has been guided by a simple but powerful principle: doing the right thing by our customers, employees, and communities isn’t just a responsibility—it’s how we succeed.”
The Wall Street Journal takes a look at the dot com bubble and reveals the parallels and potential lessons for our current moment in AI.
Fortune reveals that companies are hoping that AI agents can teach people how to be better managers.
In Fortune, professor Jane Hoffman argues that corporate social responsibility is a flawed concept, when what we really need is corporate accountability. Read her full thoughts here.
The Last Vegas Sun reveals that, despite a disastrous 2024, Boeing executives received millions in bonuses.
The Washington Post reports that companies are warning investors that governmental uncertainty from DOGE cuts may impact revenue this year. Meanwhile, Fortune reports that Goldman Sachs’ chief economist just downgraded the entire U.S. economy.
The Wall Street Journal’s CEO Brief speaks to anti-DEI activist Robby Starbuck, and lays out a three-point plan to help your company build resilience to backlash.
Chief Executive reveals that CEO optimism for the year has plummeted in March due to uncertainty around tariffs and growing stock market concerns. Look at all the research here.
Just Capital’s annual Rankings of America’s Most Just Companies assess corporate performance of the Russell 1000 against the priorities that matter most to the American public. Throughout the year, we monitor any unique events that are not captured by our current metrics and should theoretically impact a company’s overall score and rank. We identify those events as instances which result from a company’s actions or inactions and satisfy the following criteria: (1) considered material to just business behavior as defined by the American public, (2) have the potential to affect a company’s standing outside the normal architecture of our ranking process, and (3) are sudden, extreme, or unusual in nature.
This year, the four companies which received a unique event treatment are: Wells Fargo, Tesla, Johnson & Johnson, and Boeing.
The process of determining a unique event involves monitoring media coverage of companies through an independent feed with minimized bias, as well as consultation with the public, independent specialists, and other neutral third parties.
The details of each event, and how a company has or hasn’t responded to it, will determine the type of treatment given to the company’s overall Ranking performance. These treatments, in order of increasing severity, are Serious (I), Severe (II), and Most Severe (III). Each step of the process, including the final results, are reviewed by independent specialists and other neutral third parties.
This year, Just Capital is applying the unique event treatments only to the Most Severe (III) category. Each event should fall into one of five stakeholders, with each company receiving the lowest score corresponding to that stakeholder that the event pertains to.
We identified 41 companies throughout the monitoring process, which were cross referenced along geographical and legal considerations amongst the full Russell 1000. From that, we evaluated 18 events which satisfied Just’s criteria for a unique event. We narrowed down to a further four incidents and the related companies which received the Most Severe (III) category qualified for a unique event treatment. Further details on the monitoring process and evaluation criteria can be found in our 2025 Rankings Methodology.
The four cases which Just evaluated as Most Severe (III) are as follows:
The first recurring unique event case applies to Wells Fargo, a financial services company that provides retail, commercial, and corporate banking services through branches, the internet, and other channels to individuals, businesses, and institutions across the U.S. and in other countries. Given the evidence of its history of labor and banking violations, such as creating fake accounts and retaliation against its employees who speak up about labor conditions, continued lack of meaningful remediation efforts, and more recently the controversies regarding unionization efforts, Just Capital has given Wells Fargo the lowest score for the Shareholder Stakeholder.
The second recurring unique event case applies to Tesla. Tesla designs, develops, manufactures, and sells electric vehicles and energy storage systems and also installs, operates, and maintains solar and energy storage products. One of its products, the autopilot vehicles, has resulted in hundreds of crashes and several fatalities. Since last year, there has been at least one additional fatality attributed to Tesla’s Full Self-Driving technology. In response to these events, Tesla’s communication regarding the safety of its products has also been misleading to its customers, and has doubled down on this technology with the unveiling of its new robotaxi, Cybercab, despite significant safety concerns from experts and regulators. For these events, we have given Tesla the lowest score for the Customers Stakeholder.
The third recurring unique event case applies to Johnson & Johnson, which makes a range of health and well-being products in three business segments: consumer, pharmaceutical, and medical devices. Johnson & Johnson continues to attempt to use bankruptcy filings to avoid paying the estimated $9 billion settlement to tens of thousands of people affected by the contamination of its talc products. Due to the continuation of these financial maneuvers, Johnson & Johnson has received the lowest score for the Customers Stakeholder.
Since our initial unique event treatment, there have been no substantial changes in business practices by any of the above companies that would result in the removal of this treatment. Barring any significant changes in business practices specifically related to these events, this treatment will remain in effect for a maximum of three years. If another event or development occurs after the three-year period, the event can be evaluated and, in appropriate cases, treatment can be reinstated.
The fourth and final unique event treatment was applied to Boeing, which is an aerospace and defense corporation that designs, manufactures, and sells commercial airplanes, defense systems, and space technology to customers worldwide. On January 5, 2024, a fuselage plug door blew off mid-flight, the latest in several safety-related incidents that have plagued the manufacturer in recent years. Several whistleblowers have come forward alleging a culture that promotes production speed and efficiency over product safety. As a result of these events, Boeing has received the lowest score for the Customer Stakeholder.
It’s been a busy week to say the least. MLK Day, the inauguration of President Trump, a flurry of executive orders and announcements, the World Economic Forum in Davos, not to mention the most snow in Houston, Charleston, and New Orleans in 130 years and more L.A. fires.
But let’s start with the newly-released 2025 Edelman Trust Barometer, which centers on a “crisis of grievance”. It’s disturbing reading. According to the report, optimism for the next generation is lacking, over half of young adults approve of hostile activism, and there’s been an “unprecedented global decline in employer trust”. Grievances against government, business, and particularly the rich are widespread, and with greater grievance comes more suspicion of AI and more belief in politics as a zero-sum game.
Interestingly, only business is seen as both ethical and competent. CEOs are considered justified for acting on social issues if they can have a major impact and improve business performance. Priority issues included providing good paying jobs, employee training and reskilling, and nurturing workplace civility. Tackling affordability, climate change, misinformation and discrimination were identified as areas where business should go further.
All of this dovetails neatly with Just’s own recent survey work. Though global in nature – as this week’s Davos agenda demonstrates (see below) – the themes in the Edelman report are especially resonant in the U.S. They will likely shape the second Trump Presidency. They also give U.S. corporations an incredible opportunity to step up and lead, not only in providing the pathways to economic security that Dr. King espoused, but to heal division and rebuild trust within society itself.
Be well,
Martin
With Davos in full swing, here are some of the biggest news stories coming from the conference:
CNBC has written an extensive summary of how CEOs are talking about the number one issue at Davos this year: AI. Coverage includes some of the biggest takeaways and quotes on which workforces the technology threatens, what regulation can help or hurt the industry, and more.
The other major theme of Davos? Growth. HP CEO Enrique Lores is optimistic about Trump administration deregulation policies and their capacity to drive growth, echoing similar comments from the CEOs of BNY, TCW Group, and more.
Coca-Cola CEO James Quincey believes global inflation will finally moderate in 2025.
The AP runs down a list of some of the largest companies announcing layoffs, including BP’s recent announcement that the company is eliminating nearly 4,700 jobs worldwide as a cost-cutting measure.
TikTok is back – for now. The Washington Posts writes on Trump’s executive order, which allows the app to function for another 70 days while searching for a U.S. buyer.
Fortune examines the trend of Gen Z creating companies and getting into self-employment at a higher rate – and earlier age – than previous generations, and what that means for the future of employment.
Reuters reports that Goldman Sachs CEO David Solomon is being offered an $80 million dollar stock bonus to stay on as the head of the company for another five years.
The FTC is suing PepsiCo for allegedly giving one big-box retailer more favorable pricing than others. CNBC has the story.
Nearly 18,000 Costco workers are preparing to strike on February 1st if their new union contract demands are not met, per CBS News.
This chart comes from the Edelman Trust Barometer, and shows that employees across the world are demanding more action from businesses on affordability, climate change, retraining to adapt to technological changes, and more. Explore all the details inside.
