Breaking news: I agree with the president on something.
Ok, real breaking news: Trump is calling for an end to quarterly earnings reports.
Back in 2009, when Paul Polman (my co-author on the book Net Positive) became CEO of Unilever, he told investors, “We’re not going to report quarterly earnings or provide guidance anymore.” He knew that a 3-month focus was a straight-jacket, pushing leaders to chase short-term profits instead of building long-term value.
For me, one of the enduring mysteries and disappointments in corporate sustainability has been that few CEOs followed Paul’s lead. As another CEO once told me, “Nobody wants to run their company the way a 28-year-old analyst says to.” And yet that CEO kept on reporting quarterly.
Quarterly focus is the manifestation of short-termism, perhaps the biggest hurdle to real change. Breaking the quarterly reporting dogma can free companies to invest in the long-term — not just sustainability, but R&D, people, and more.
Even though I’m sure the intention here is not to help companies be more sustainable — and there may be multiple ulterior motives — it’s still a win. I never would’ve guessed that this shift could happen under this administration.
Look out your window for flying pigs.
(discussion here on this post and whether this is a way to reduce transparency vs. enhance long-term thinking)
Other recent posts
EPA Looks to end mandatory GHG reporting (or, where I really didn’t agree with Trump)
Survey of CEOs Shows Commitment to Sustainability
Disney Cancels Jimmy Kimmel (phew, on this getting reversed)
Exxon Looking to Water Down EU Transparency Regulations
Sorry tech CEOs, Visas Cost $100,000
[Image: sandid from Pixabay]
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