TLDR:
- Vice President Kamala Harris sparks debate on corporate governance and grocery price-gouging
- Corporate governance plays a key role in balancing benefit to shareholders with benefits to consumers, workers, suppliers, and the environment
Consumers, groceries, price-gouging, and stakeholder capitalism are at the center of the discussion sparked by Vice President Kamala Harris’s support for controls on price-gouging. A debate has emerged on the role of corporate governance in addressing the high cost of food and essential goods. Margot Brandenburg from the Ford Foundation argues that modern corporate law and custom need to be reevaluated to give companies a mandate to consider the needs of stakeholders beyond just maximizing profits for investors.
Over the past decade, there has been a significant shift towards benefit corporations that balance stockholders’ interests with the best interests of all affected by the corporation’s conduct. Companies like Vital Farms, a public benefit corporation, have demonstrated a reluctance to increase prices significantly in response to market fluctuations, prioritizing the well-being of all stakeholders.
In other news, London’s Piclo has secured fresh capital for its power marketplace that helps electricity system operators balance supply and demand on local grids. Efficient Capital Labs has also raised $11 million to provide revenue-based financing for cross-border software innovators, addressing the funding gap for tech startups operating across multiple countries.
