Andrew Puzder raises alarm over stakeholder capitalism trends

In the United States, Andrew Puzder, recently appointed by President Donald Trump as ambassador to the European Union, has expressed serious concerns about the growing influence of stakeholder capitalism. This warning comes as part of his promotion of a new book titled 'A Tyranny for the Good of its Victims: The Ugly Truth about Stakeholder Capitalism.' Puzder, known for his previous role as the chief executive of CKE Restaurants, which operates popular fast food brands Carl's Jr. and Hardee's, has taken a close look at trends within corporate America that he believes could undermine traditional capitalism. Puzder specifically criticized the move of major corporations like Disney, Target, and Anheuser-Busch toward progressive social agendas that he argues do not align with their core consumer base. He questioned the motivations behind these companies adopting such policies, highlighting instances such as ExxonMobil and Chevron's commitment to net-zero carbon emissions, which he believes conflict with their primary business of oil and gas production. He attributes these shifts to the influence of financial elite who run large asset management firms like BlackRock, State Street, and Vanguard, which collectively hold significant shares in a majority of S&P 500 firms. These investment firms are positioned as an influential voting bloc within the corporate sector, which Puzder claims can steer companies towards adopting policies that may be contrary to the interests of consumers and traditional business practices. He warned that while the environmental, social, and governance (ESG) standards seem to be facing backlash, consumers must remain vigilant as the influence of these corporate policies can impact the entire economy. Lastly, Puzder encourages a stronger response from conservative consumers akin to the mobilization seen among progressive consumers who actively support brands aligned with their values. He cites activist Robby Starbuck's recent success as an example of how efforts from the right could balance out corporate agendas, suggesting that consumers must vocalize their expectations and preferences to promote accountability within these corporations.