As we approach Labor Day this year, our nation finds itself in a moment of (likely soon-to-be fleeting) economic expansion and a tight labor market, yet facing greater uncertainty around the quality of American jobs. Structures of work continue to change, inequality continues to rise, and the social contract between companies and their workers continues to weaken. Whether a retirement plan, healthcare benefits, or a living wage, many workers can no longer count on their employers to deliver the economic security they need. But workers have not given up on this basic tenet.
Worker pay and well-being continue to be core priorities when it comes to what Americans want from corporate America today, based on our annual survey on just business behavior that has engaged nearly 100,000 Americans over the past five years. And across demographics – even political affiliation – Americans agree that companies should prioritize fair pay, benefits, a living wage, safety, equal opportunity, skills training, work-life balance, and more.
A resounding 80% of Americans feel that companies do not currently share enough of their success, believing they favor shareholders above all other stakeholders. There is a tremendous opportunity – especially in light of the Business Roundtable’s renewed Statement on the Purpose of a Corporation – for the private sector to play a defining role in improving people’s lives and restoring faith in the American Dream.
We know from years of research that the companies that invest in workers, customers, and communities, outperform their peers. And that people want to work for, buy from, and invest in just companies – so there are clear competitive advantages to win the race for talent, purpose-driven consumers, as well as ESG-focused investors.
The good news is that there are companies – in every sector – leading the way in serving their employees through the wages and benefits they provide, along with the programs and initiatives they offer to keep their employees safe, healthy, and prepared for the future of work.
Here are some of the concrete actions these companies – the Top 33 Companies for Workers by industry, in order of their overall JUST Capital rank – are taking:
Microsoft
Industry: Software
Overall JUST Capital Rank: 1
In 2018, Microsoft was called an “old-school tech company [with] a decidedly new-school approach to employee benefits” by Fatherly Magazine, thanks to its adoption benefits, daycare services, and assistance to parents with special needs children.
International Business Machines
Industry: Computer Services
Overall JUST Capital Rank: 5
IBM’s Global Work/Life Fund – a multi-year, $50 million effort to address work-life balance challenges worldwide – increases the availability of dependent care services in communities where IBM employees live and work.
NVIDIA
Industry: Semiconductors & Equipment
Overall JUST Capital Rank: 6
NVIDIA has grown its Women in Technology programs beyond its headquarters, and in 2019, expanded the initiative – helping female employees to broaden their technical knowledge and skills – to India.
Procter & Gamble
Industry: Personal Products
Overall JUST Capital Rank: 8
P&G has prioritized equal pay and gender equality, along with its efforts to commit to achieving 50/50 representation of women and men at all levels of the organization.
Cisco Systems
Industry: Technology Hardware
Overall JUST Capital Rank: 10
Cisco offers up to $10,000 in tuition reimbursement to employees, and partners with learning platform Degreed to provide extensive training and career development opportunities to employees.
Humana
Industry: Health Care Providers
Overall JUST Capital Rank: 11
Last year, Humana achieved its Bold Goal for employees, improving the health of those who work for the company by 20 percent, through programs and services that help employees focus on their mental and physical health and well-being.
Accenture
Industry: Commercial Support Services
Overall JUST Capital Rank: 12
Accenture has committed to hiring 5,000 U.S. veterans and military spouses by 2020, and provides training to military service members interested in careers in software engineering.
General Motors
Industry: Automobiles & Parts
Overall JUST Capital Rank: 14
This year, GM was recognized by Equileap for its commitment to gender equality – from achieving pay equity across all salary bands in 2018 to prioritizing gender representation in the C-Suite and Board to combatting sexual violence in the workplace.
General Mills
Industry: Food, Beverage, & Tobacco
Overall JUST Capital Rank: 15
Workplace safety is a top priority for General Mills, which has committed to creating an incident-free environment for employees – mitigating workplace hazards and reducing environmental impacts at all locations.
ResMed
Industry: Health Care Equipment & Services
Overall JUST Capital Rank: 18
ResMed offers strong work-life balance and prioritizes employee health and well-being through its on-site fitness centers, subsidized quit-smoking programs, and mental health counseling.
3M Co
Industry: Industrial Goods
Overall JUST Capital Rank: 26
In addition to its strong parental leave program – which 805 men and 354 women participated in in 2018 – 3M offers adoption assistance, parenting resources, and scholarships for dependents of employees.
Exelon Corp
Industry: Utilities
Overall JUST Capital Rank: 31
Exelon celebrates its team through its Safety Achievement Awards – awarding employees that go above and beyond their jobs to improve public safety with prize money to donate to the safety-related charity of their choice.
Facebook
Industry: Internet
Overall JUST Capital Rank: 35
Facebook’s impressive employee perks include wellness reimbursements, financial assistance to new parents, dry cleaning and laundry services, and a 30-day break every five years.
Owens Corning
Industry: Building Materials & Packaging
Overall JUST Capital Rank: 36
In 2017, Owens Corning employees tackled an average of 17 hours of training, taking advantage of the company’s mentoring programs and leadership training, as well as tuition support and graduate-level assistance.
Nielsen Holdings
Industry: Media
Overall JUST Capital Rank: 40
Nielsen’s myTime program provides unlimited vacation days to associates, providing them with flexibility and autonomy to manage their work and vacation time.
Verizon Communications
Industry: Telecommunications
Overall JUST Capital Rank: 44
Verizon aims to invest in the advancement of women and people of color on its team – through its Pay Equity Commitment, leadership training and networking for employees of color, and unconscious bias workshops for leadership.
Principal Financial Group
Industry: Insurance
Overall JUST Capital Rank: 54
Principal Financial provides on-site child development centers for new parents, as well as mothers’ rooms to support moms when they return to work.
Eli Lilly & Co
Industry: Pharmaceuticals & Biotech
Overall JUST Capital Rank: 58
Eli Lilly has conducted pay equity studies in the U.S. for 20 years, and in 2018, announced it would expand its efforts by increasing the number of companies covered by its assessments.
DowDuPont
Industry: Chemicals
Overall JUST Capital Rank: 67
This year, DowDuPont split into three companies – DuPont de Nemours, Dow, and Corteva – all of which offer flexible working hours and strong work-life balance.
eBay
Industry: Retail
Overall JUST Capital Rank: 68
eBay provides exceptional paid parental leave to new parents – with 24 weeks offered to new mothers and 12 to fathers and secondary caregivers.
Zillow Group
Industry: Real Estate
Overall JUST capital Rank: 69
In its first-ever CSR Report – released last week – Zillow shared that women earned $1.01 for every dollar a man with similar skills made in a comparable role.
ExxonMobil
Industry: Oil & Gas
Overall JUST Capital Rank: 82
ExxonMobil has seven employee-led resource groups that offer developmental programs, community service opportunities, and mentoring to support its team.
Southwest Airlines
Industry: Transportation
Overall JUST Capital Rank: 86
Southwest Airlines provides extensive skills development opportunities through its own training facility, rotational development program, and tuition reimbursement (up to $5,000 annually).
Deere & Co
Industry: Commercial Vehicles & Machinery
Overall JUST Capital Rank: 107
Deere employees have access to extensive volunteering and charitable giving opportunities – including the company’s FIRST mentorship and global Citizenship programs.
Baker Hughes GE
Industry: Energy Equipment & Services
Overall JUST Capital Rank: 113
Baker Hughes GE is contributing to Balance the Equation – parent company GE’s goal to have 20,000 women fill STEM roles by 2020, an effort to close the gender gap in technical fields.
Citigroup
Industry: Banks
Overall JUST Capital Rank: 131
Citi provides a range of programs for work-life balance management – including on-site medical clinics, health advocacy programs, and Save Well plans to help employees build personal financial sustainability.
Mastercard
Industry: Consumer & Diversified Finance
Overall JUST Capital Rank: 132
As part of its award-winning Girls4Tech program, more than 3,500 Mastercard employees mentored more than 400,000 girls in 25 countries – an opportunity to contribute to the global advancement of women in STEM.
Raytheon
Industry: Aerospace & Defense
Overall JUST Capital Rank: 138
In 2018, Raytheon expanded its commitment to diversity & inclusion by broadening representation of women and people of color in leadership positions.
Expedia Group
Industry: Restaurants & Leisure
Overall JUST Capital Rank: 145
In addition to more traditional time off benefits like sick days and paid vacation time, Expedia offers travel discounts and leisure travel reimbursements to its employees.
Goldman Sachs
Industry: Capital Markets
Overall JUST Capital Rank: 164
As part of its efforts to drive progress on diversity & inclusion, Goldman Sachs launched its “Identity Matters” workshop, a classroom curriculum for its team to address inclusion barriers, focusing on race and ethnicity.
Electronic Arts
Industry: Household Goods & Apparel
Overall JUST Capital Rank: 171
In keeping with its goal to “inspire the world to play,” EA strives to create a fun working environment – providing onsite fitness centers and free games to employees.
Newmont Mining
Industry: Basic Resources
Overall JUST Capital Rank: 197
Newmont Mining has collective bargaining and enterprise agreements across the globe, with union agreements in place in five countries – including Australia, Ghana, Peru, the U.S., and as of 2018, Suriname.
McKesson Corp
Industry: Food & Drug Retailers
Overall JUST Capital Rank: 325
McKesson’s “Taking Care of Our Own” fund offers emergency assistance to employees working 20 or more hours per week, who face difficulty following personal hardships or natural disasters, and assisted 281 employees in 2018.
This piece was originally published on Forbes.com.
In the wake of Business Roundtable’s statement that corporations should serve all of their stakeholders, various critics have come out saying the move will hurt shareholders.
Martin Whittaker appeared on Bloomberg TV to explain why investing in workers, communities, and society can deliver increased shareholder value.
In the wake of Business Roundtable’s new statement that the purpose of corporation is to serve all its stakeholders (not just shareholders), plenty of different voices from across the nation have come out to criticize the shift.
Martin Whittaker joined CNBC’s Nightly Business Report on PBS to discuss why this change is not only necessary, but it’s what many CEO’s have already put into action, and what the American people want from corporate America today.
For the last 50 years, shareholder primacy was the mantra for most companies – but now that’s shifting. With Business Roundtable’s new Statement on the Purpose of a Corporation committing to serving all stakeholders not just shareholders, could we be at a turning point for corporate America?
JUST CEO, Martin Whittaker, joins Yahoo Finance to talk about the statement’s significance, and why this new direction is so important for everyday Americans. Watch here:
The Business Roundtable redefines the purpose of a corporation for the 21st century
Earlier this summer, in conversation with Larry Fink at the Aspen Ideas Festival, Darren Walker, President of the Ford Foundation, said, “As an asset owner…I would like to put a nail in the coffin of the ideology of Milton Friedman that the only purpose of the firm is profits – because that ideology will asphyxiate our democracy and ultimately be harmful and be the end of us all.”
Today sees a major step being taken in that direction.
The Business Roundtable, an association of the chief executive officers of nearly 200 of America’s largest and most influential companies, released a new Statement on the Purpose of a Corporation. After 41 years of endorsing a business governance model of shareholder primacy – in which corporations exist principally to serve shareholders – the organization committed to a new ethos in which the purpose of a corporation is to benefit “all stakeholders – customers, employees, suppliers, communities and shareholders.”
The move was warmly welcomed by Walker in the Roundtable’s press release, “This is tremendous news because it is more critical than ever that businesses in the 21st century are focused on generating long-term value for all stakeholders, addressing the challenges we face, and resulting in mutual prosperity and sustainability for both business and society.”
Based on our research, the American people wholeheartedly agree. Every year since 2015 we’ve polled thousands of Americans on a fully representative basis to ask them what matters most regarding business behavior today. The key takeaway, every year, is that regardless of income, age, political affiliation, or location, the public is united in their desire for corporate America to stop prioritizing shareholders above all else, and to start sharing success with all business stakeholders, including employees (primarily), as well as customers, communities, and the environment. They also want corporations to lead with integrity and to embrace more ethical governance principles.
Seen in that context, the Business Roundtable’s move may be viewed as heralding a new era in business thinking, one that aligns much more closely with the values of the public and which, if successful, can help to restore faith in business and markets as a force for good for all Americans.
What matters now is implementation. Corporate CEOs need to operate every day with all their stakeholders in mind, and investors need to recognize that those choices make for more successful companies. The system needs to align to enable a more virtuous cycle.
As companies and investors move in this direction, we have solutions here at JUST to support the journey. We have the definitive Roadmap on what corporate America should prioritize regarding each stakeholder, and four years of corporate performance data, research, and rankings to help companies benchmark themselves against their peers on all the important issues, identify best practices, and assess the business and investment case for adopting just businesses behaviors.
From JUST Capital CEO, Martin Whittaker: “Corporate America is going through a sea change in terms of how the core purpose of business is defined. We applaud the Business Roundtable’s leadership on this issue and their embrace of the stakeholder ethos in which businesses are committed to greater shared prosperity for all Americans. We look forward to working with them and all corporations to bring this vision to life.”
If you are a corporation, especially one in the Russell 1000, and haven’t yet engaged with JUST Capital, please reach out to our corporate engagement team to learn more. We’re eager to help you on your journey to justness and create a more inclusive economy for all Americans.
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Read the full text of the Business Roundtable’s New Statement on the Purpose of a Corporation
Americans deserve an economy that allows each person to succeed through hard work and creativity and to lead a life of meaning and dignity. We believe the free-market system is the best means of generating good jobs, a strong and sustainable economy, innovation, a healthy environment and economic opportunity for all.
Businesses play a vital role in the economy by creating jobs, fostering innovation and providing essential goods and services. Businesses make and sell consumer products; manufacture equipment and vehicles; support the national defense; grow and produce food; provide health care; generate and deliver energy; and offer financial, communications and other services that underpin economic growth.
While each of our individual companies serves its own corporate purpose, we share a fundamental commitment to all of our stakeholders. We commit to:
Each of our stakeholders is essential. We commit to deliver value to all of them, for the future success of our companies, our communities and our country.
On the road to a more just marketplace, America can only get so far without the bold efforts of its corporate leaders. And tech companies, which have contributed to some of our nation’s most pressing challenges – from data privacy to income inequality – may currently stand at the forefront of solving them.
Microsoft, this year’s top company in JUST Capital’s Rankings of America’s Most JUST Companies, announced yesterday that it would invest $500 million in affordable housing in the Seattle area – a move that signals a long-term commitment to the company’s local community.
Arriving on the heels of fellow tech giant Amazon’s announcement that it would build new campuses in Long Island City and Richmond, Microsoft’s announcement also reflects an ambitious effort to tackle the impacts – including growing income and housing inequality – that it has had on the local communities where its industry is concentrated, not unlike Salesforce CEO Mark Benioff’s initiatives to support San Francisco’s homeless population.
And this is not the first time that Microsoft has done so – its efforts to address data privacy issues and expand paid parental leave policieshave positioned the company head and shoulders above the competition. And not only with regard to ethical concerns – Microsoft has outperformed its peers in recent quarters, and its latest commitment is just another example of the company’s proactive efforts to address issues before external factors, including the market, force its hand.
In our Rankings, Microsoft ranks not only first overall, but is also tied for third for the work it does to maintain strong relationships with communities. A few other key metrics that drive Microsoft’s high performance in the 2018 list of America’s Most JUST Companies include:
As more and more U.S. companies seek to align their business practices with the priorities of the American public, Microsoft’s efforts to address its societal impacts can and should serve as an example to companies across all industries – not just in the tech sector – of how they can support a form of capitalism that works for all the people it serves.
This article was originally published on Forbes.com.
