Nike shareholders reject ESG demands: A case of democracy in action
October 1, 2024
ProPublica argues that it’s a problem Nike shareholders can’t get the company to embrace ESG policies — environmental, social, and governance — issues that progressives advocate for. Instead of focusing on business and profits, they believe corporations should prioritize these causes.
As they say:
Lisa Hayles of Trillium Asset Management, a Boston-based sustainable investing firm that owned $11.7 million in Nike stock as of June 30, said Trillium and others have been “stonewalled” by Nike on questions about labor rights,
Well, OK, $11.7 million is real money. But:
The company is worth about $120 billion.
It’s not surprising that ProPublica would take this stance, but there’s a significant issue it overlooks: This is democracy in action.
Owning 0.0097% of a company—less than one-thousandth of one percent—doesn’t give you the right to dictate corporate policy. Just like in government, where the majority rules, the same is true for corporations. Every share is a vote, and if most shareholders aren’t interested in ESG, it doesn’t happen.
ProPublica misses this key point. They’re upset about ESG being sidelined, but the fact is that the vast majority of shareholders simply don’t want it.