The United States is torn apart before the midterm elections

“How can we say a company is thriving when its employees are suffering. If we put the human being at the center of the calculations, we will see Disney in a whole new light, knowing that many of its employees have to resort to food aid,” Abigail Disney, the granddaughter of the group’s co-founder, was quoted as saying. Namesake and activist. Heiress to the entertainment giant Co-write a documentary Worthy “The American Dream and Other Tales(The American Dream and Other Tales), released in the US at the end of September 2022, deals with a company’s social practices by having full-time employees struggling to make ends meet.

She had been pointing a finger at this reality for several years, particularly disapproving The extremely high pay of a Disney directorCompared to the very low earnings of the “cast members”, the theme park workers. In an interview with CNBCAbigail Disney explains that Companies must take better account of their people and the planet. She quotes B-Corp movement as an example. “We are witnessing the emergence of a new thought that considers capitalism to be a good system under which (…) from the moment it is so well organized, that it no longer remains this predatory entity,” she believes.

Two ideologies collide

This vision for Capitalism is closer to all stakeholders From corporations, not just their shareholders, they are far from being shared by the entire American community. The approach of the midterm elections, which take place on November 8 to renew the House of Representatives and part of the Senate, has pushed it into political debates. Two ideologies collide. On the one hand, Republicans are in favor of an unregulated economy. On the other hand, a part of the democrats is more inclined to change the economic world. The corporate stance on topics like human rights, climate, and diversity is epitomized by the Democratic camp as an emanation of a “wake-up” culture, which is too progressive for their taste.

Many Republican state governors, such as Louisiana, Texas, and Florida, have publicly criticized the sustainable investment strategies of major financial institutions. This summer, the Comptroller of the State of Texas published a list of banks and investment funds deemed too “green” and asked the state pension fund not to use their services anymore. Among the companies boycotted were BNP Paribas and BlackRock. In early October, Louisiana too BlackRock blacklisted And the withdrawal of public funds invested in the management company.

“Anti-Wake” Initiatives

Entrepreneurs decided to create “anti-wake” initiatives. Such as Toby Neugebauer and Nick Ayers, former collaborator of Mike Pence (Donald Trump’s Vice President), who created GloriFi. Calling itself “pro-liberty, pro-American, pro-capitalist,” this fintech wants to offer banking services to those who have been disenchanted with the overly liberal policy of traditional banks. However, the small shoot has a messy start. According to the Wall Street Journal, Toby Neugebauer had to step down as CEO because the fintech company was on the verge of bankruptcy.

In the same vein, the “God Bless America” investment fund launched on October 10, 2022. It promises savers to invest in listed US companies, eliminating those that “emphasized left-wing or liberal and social political activism, at the expense of maximizing shareholder returns.”

This dichotomy between two visions of economics seems irreconcilable. However, Abigail Disney believes that “Those who criticize ESG miss the point. They fail to see that it contributes to better business outcomes in the long term.”

Arnaud Dumas, @adumas5