For far too long corporate America has ruled the stage, taking what they can, when they can, and leaving America and their shareholders in the dust. But now, they just might have to change their ways or at least prove that their decisions are what is best for the company and investors alike.
Thanks to a new legislative proposal by Florida Republican Senator Marco Rubio on Thursday, the Mind Your Own Business Act would seek to do just that.
According to Rubio’s statement on the proposed bill, corporations have gotten away with “tyranny” for decades. They’ve been able to make massive moves based on nothing but politics that have little to do with their company and certainly nothing to do with either their investors’ wishes or how they are spending their shareholders’ money.
You know, like when Major League Baseball president Rob Manfred announced that the MLB All-Star Games would be moved from Atlanta, Georgia, to Denver, Colorado in an effort to boycott the newly passed and rather moderate Georgia voting integrity law.
I highly doubt Manfred or anyone on his council considered how the moves would affect shareholders or even their opinions on the matter. They simply didn’t like the new law and wanted everyone to know it by appearing as woke as possible.
Or what about when Nike decided to cancel the sale of their 2019 Betsy Ross Flag shoes at the behest of failed NFL quarterback and liberal activist Colin Kaepernick? Again, do you think that was honestly the best move to make for the sake of investors and the company?
Then there are also the numerous banks that have recently stopped any and all interaction with gun manufacturers. Surely bringing the profits of the millions of firearms sold around the nation would be better for business, not worse, right?
And yet, that’s exactly what corporate officers wanted, and so it’s what they did.
Rubio says it all has to stop, or at the very least, those big wigs in the corporate world should be held accountable when their “non-pecuniary” based decisions lead to adverse effects for either the company as a whole and/or shareholders.
So from here on out, Rubio is proposing a way to give shareholders an equal standing in court, should they disagree with or think a company’s decision to be based on pure politics and personal bias.
“My Mind Your Own Business Act would put the burden of proof on corporations to show that their far left actions were in shareholders’ best interest, and make corporate directors and officers personally liable if they can’t prove it.”
Now, to be clear, shareholders have been able to take companies to court over these issues for years. However, due to bylaws and provisions and in those company bylaws, businesses are nearly always given the upper hand and pretty much-guaranteed protection.
Rubio’s new law would change that, instead, giving shareholders “a clear path forward,” according to Fox Business.
“No more legal tricks that shield these corporate executives from accountability. If they really believe that being woke is good for business, they should have to say so – and prove it – under oath in court.”
After all, as a company or corporate executive, isn’t it their express duty to do what is best for those who make sure their company stays afloat?
The conservative shareholder activist group, the Free Enterprise Project, certainly thinks so. In a recent news release, FEP’s director Scott Shepherd stated that his group “heartily” endorses Rubio’s proposal, as it an “important first step toward reining in the most aggressively politicized American corporations.”
Of course, given the current political climate in Congress, Rubio’s proposal is likely to fall on deaf ears at the moment. But the same might be true in another year or so.
As 2022 rapidly approaches, and Biden and his ilk’s approval rating continues to spiral, it’s more than likely that ideas such as this and others will get significant floor time as well as a passing vote with a GOP majority returned to both houses.