The way it works is as a business, in particular, a big business today, you pretend like you care about something other than profit and power, precisely to gain more profit and power. “What exactly is the scam that you accuse “woke” corporations of?” asks Altamar’s Muni Jensen. And that’s actually the biggest threat that I think stakeholder capitalism poses to democracy,” explains Ramaswamy.
It’s one thing if you’re talking about small mom and pop businesses across the country, running their businesses in ways that accord with their values and those of their customers and take social stands… But when big business in our country has ultimately co-opted decision-making power in our culture that’s best resolved through free speech and open debate on issues ranging from climate change to racial justice. “I have a particular problem with stakeholder capitalism when it’s espoused by big business. Why is that a bad thing? At a time when millennials and Gen-Zers demand more social “woke-ness”, why not buy at companies that are jumping to demonstrate their activism as a way to ‘stand out’ in the market. Given the repeated failures of government to resolve long-standing issues such as social inequality and racial injustice, corporations are spearheading this new wave of conscious consumerism and promoting social causes. It means that a small group of investors and CEOs determine what’s good for the rest of society, rather than our democracy at large, where every person’s voice and vote counts equally,” says Ramaswamy.Īltamar has doubts about this argument. “’ Stakeholder capitalism,’ which is that businesses ought to be vehicles for advancing, not just the pursuit of profits through the sale of products, but also demand social values, inadvertently poses a threat to democracy. After publishing his much-debated book, Vivek is a familiar voice and writer on stakeholder capitalism, social activism, and free speech. He is the founder, CEO-turned-executive-chairman of Roivant Sciences, a pharmaceutical company focused on applying technology to drug development. Ramaswamy is a former first-generation biotechnology entrepreneur, investor, and innovator. This week, we’re joined by Vivek Ramaswamy, author of Woke, Inc.: Inside Corporate America’s Social Justice Scam, who explains why he believes that politics should have no place in business. Recently, it seems most businesses “need” to take a stance on LGBTQ+ issues, racial equality, or voting rights. Should corporations get involved in politics? Big business has taken on causes, from climate change to racial justice. Social activism and conscious consumerism are on everyone’s mind these days. Guest: Vivek Ramaswamy, author of Woke, Inc., founder and executive chairman of Roivant Sciences