Strategic CSR - Bernie vs. Claude

This video offers a fascinating snapshot of the ability of A.I. (Claude, in particular) to conduct a coherent conversation (posted last Friday):

https://youtu.be/h3AtWdeu_G0

It is insightful specifically in terms of the issue of privacy -- the impact of A.I. on us individually (how data is being collected on all of us, all of the time) and its impact on the democratic process.

Take care

David

David Chandler

Strategic Corporate Social Responsibility: Sustainable Value Creation (6e)

© Sage Publications, 2023

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e  

Strategic CSR Simulation: http://www.strategiccsrsim.com/

The library of CSR Newsletters is archived at: https://strategiccsr-sage.blogspot.com/

Strategic CSR - Earnings guidance

Well, this isn't exactly the rationale I was hoping for, but the article in the url below notes that more companies are refusing to issue quarterly earnings guidance -- a blow to the short-term thinking (and misguided focus on shareholder value) that dominates our economic system: 

"Et tu, Walmart. Analysts covering the world's largest retailer will have to sharpen their pencils now that it has joined several other companies in scrapping quarterly earnings guidance (it kept it for the full year)."

It seems that the uncertainty injected into the economy, in recent months, is the 'excuse' CEOs are drawing on to avoid the glare of quarterly expectations:

"'Uncertainty' is practically a dirty word on Wall Street. After competitors scrapped their public forecasts, United Airlines instead took the unusual step last month of publishing two scenarios—one for a recession and another for an expansion."

As the author notes, however, the better approach might have been to scrap earnings guidance (i.e., not earnings reports) altogether:

"Unfortunately, that is a luxury mainly available to elite CEOs who are extremely secure in their jobs: Apple's Tim Cook, JPMorgan Chase's Jamie Dimon and, of course, Warren Buffett, who recently announced his impending retirement after six decades running Berkshire Hathaway."

Such a narrow focus on shareholder value, of course, is a relatively recent phenomenon, driven by neoliberal economic theory in the twentieth century (which resulted in most CEOs today being paid using stock options). But there is a strong argument to say that, not only is shareholder value a theory (rather than a legal fact), but that a singular (or even primary) focus on delivering it can be counterproductive to the long-term interests of the organization:

"Henry Singleton might be the greatest example of an executive who delivered with minimum regard for what Wall Street thought. Teledyne, the conglomerate he founded and ran for almost three decades, was a hot stock in the 1960s. … He was 'the smartest businessman I ever knew,' said the late Charlie Munger, who was vice chairman of Berkshire Hathaway."

 

Broad stakeholder support for not issuing guidance, particularly from the board and other key stakeholders, is what is required for CEOs to have the confidence to make decisions for the medium to long term, which is how the optimal level of value is created. While somewhat regular earnings reports are essential to allow for adequate oversight and governance mechanisms, quarterly earnings guidance is an unnecessary legacy of a disproportionate focus on shareholder value, which can be unhealthy, as noted in the article in the second url below:

 

"What would not be painful: a voluntary reduction in 'quarterly guidance,' or forecasts, by executives about how they expect their companies to fare. Warren Buffett of Berkshire Hathaway and Jamie Dimon of JPMorgan Chase recommended this change in a Wall Street Journal essay in 2018. Companies routinely use these forecasts to manipulate the expectations of financial analysts so that when earnings reports ultimately arrive, they constitute 'positive surprises' that set off rallies in the companies' shares."

 

While the article in the third url below suggests this development is gaining momentum and possibly being extended to earnings reports:

"The Securities and Exchange Commission is preparing a proposal to eliminate the requirement to report earnings quarterly and instead give companies the option to share results twice a year, according to people familiar with the matter. The regulator could publish the proposal as soon as next month."

 

Take care

David

 

David Chandler

Strategic Corporate Social Responsibility: Sustainable Value Creation (6e)

© Sage Publications, 2023

 

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e  

Strategic CSR Simulation: http://www.strategiccsrsim.com/

The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/

 

Elite CEOs Don't Need Earnings Guidance

By Spencer Jakab

May 16, 2025

The Wall Street Journal

Late Edition – Final

B12

https://www.wsj.com/business/elite-ceos-dont-need-earnings-guidance-a0e5de93

 

Is The the Time to End Quarterly Earnings Reports?

By Jeff Sommer

October 5, 2025

The New York Times

Late Edition – Final

BU4

https://www.nytimes.com/2025/10/02/business/trump-earnings-reports-investing-stocks.html

 

SEC Prepares Proposal to Eliminate Quarterly Reporting Requirement

By Corrie Driebusch

March 16, 2025

The Wall Street Journal

https://www.wsj.com/finance/regulation/sec-prepares-proposal-to-eliminate-quarterly-reporting-requirement-1d700bbb

Strategic CSR - Scale

Scale matters. Sure, it's nice that Patagonia cares about the environment, but time has taught us that the collective actions of smaller companies are only substantive when they alter the behavior of much larger companies. Among that subset of companies, there are none much larger and more influential than Walmart and, as the article in the url below reminds us, when Walmart acts, the whole country is affected:

 

"Walmart is taking the biggest step yet to overhaul ingredients used in America's food supply. The country's largest grocer said Wednesday that it was working to remove synthetic dyes from all its store-brand foods, including Great Value, Marketside, Freshness Guaranteed and Bettergoods. Walmart also plans to eliminate 30 other ingredients, ranging from certain artificial sweeteners to preservatives."

Whatever the motivating factor and stakeholder influence, and clearly politics is influencing this decision, when Walmart decides to do something there is a ripple effect far beyond the firm and throughout its supply chain:

"Walmart's heft makes its plans likely to trigger further changes throughout the nation's food-supply chain, from ingredient suppliers to other food makers and retailers. Great Value alone is one of the largest consumer brands in the country, with billions of dollars in sales each year."

This influence has grown larger in recent years, as consumers shift to buying more store brands to save money:

"Retailers are boosting investment in their in-house brands, with Walmart last year launching Bettergoods, a food line with trendy flavors and more natural ingredients."

The article also reveals how long it can take shifting stakeholder values to influence corporate decisions:

"For years, Walmart's customer data has shown that more shoppers want simple, natural ingredients, said Scott Morris, senior vice president for food and consumable private brands at Walmart U.S. More than 50% of Walmart shoppers now flip over a food package to look at ingredients, he said."

But, when that decision is made, especially in a company Walmart's size, we have the opportunity to make meaningful progress:

"Walmart plans to tweak more than 1,000 products across its stores gradually, in part to give ingredient suppliers time to meet its volume and cost needs, Morris said. Supplies of natural ingredients are still constrained, but growing."

Have a good weekend

David

 

David Chandler

Strategic Corporate Social Responsibility: Sustainable Value Creation (6e)

© Sage Publications, 2023

 

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e  

Strategic CSR Simulation: http://www.strategiccsrsim.com/

The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/

 

In Nod to MAHA, Walmart Ditches Dyes, Other Artificial Ingredients in Its Food Brands

By Jesse Newman and Sarah Nassauer

October 2, 2025

The Wall Street Journal

https://www.wsj.com/business/retail/walmart-ditching-dyes-other-artificial-ingredients-in-its-food-brands-d475076d

 

Strategic CSR - Concrete

I have long known that concrete is a material that is successfully recycled. The article in the url below suggests there is no reason why all concrete (100%) cannot be reused in some form:

"Concrete slabs, beams, columns and other elements from dismantled buildings can be safely reused in new construction, according to a new study. The analysis could facilitate incorporating concrete—currently responsible for as much as 9% of global greenhouse gas emissions—into the circular construction industry and make the building sector as a whole more sustainable."

If we can successfully recycle existing concrete, of course, we reduce significantly the need to produce more of the stuff:

"Building codes generally require concrete to be sound for at least 50 years. When buildings are torn down (even before the 50-year mark, as is increasingly the case) it's usually assumed that concrete's useful life is over. Old concrete either gets landfilled or downcycled into rubble for road construction or aggregate for new concrete production."

Instead, the researchers suggest there is no reason why it cannot be reused for its original purpose (or close to it):

"But until now, there has been no organized method to evaluate the potential of reusing salvaged concrete. The researchers ran thousands of computer simulations to predict the future lifespan of reused concrete, based on measurements of the condition of existing buildings."

There are calculations required in terms of how far into the future recycled concrete can last, depending on what it was used for initially, and under what conditions, but there are techniques to preserve and enhance its usable life:

"For example, a concrete slab that has been exposed to harsh elements for many decades may be best reused as an interior component. Repair and refurbishment techniques—such as waterproof coatings—can also extend the lifespan of concrete."

This is not as exciting as some sustainability topics, but seems essential if we are to make meaningful progress. Concrete is dirty stuff, but essential, so making as little of it as possible would be a big step forward.

 

Take care

David

 

David Chandler

Strategic Corporate Social Responsibility: Sustainable Value Creation (6e)

© Sage Publications, 2023

 

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e  

Strategic CSR Simulation: http://www.strategiccsrsim.com/

The library of CSR Newsletters are archived at: https://strategiccsr-sage.blogspot.com/

There's now hard evidence guaranteeing a second life for old concrete

By Sarah DeWeerdt

February 10, 2026

Anthropocene Magazine

https://www.anthropocenemagazine.org/2026/02/theres-now-hard-evidence-guaranteeing-a-second-life-for-old-concrete/

Strategic CSR - Principles

See if you can spot the intellectual inconsistency in the article in the url below:

 

"ESG funds that recently took the controversial step of dropping restrictions on weapons manufacturers are now reaping the financial rewards of that decision. Defense stocks were among the best performers when markets opened on Monday after war erupted in the Middle East. That adds to a longer stretch of gains for the sector, with the MSCI Europe Aerospace and Defense Index almost doubling in value since the beginning of last year."

 

Clearly, ideological flexibility can be useful, especially when the primary goal is to make money:

 

"For ESG funds, those stocks would traditionally have been off limits. But last year saw a major shift in investor willingness to embrace arms manufacturers, with many casting the move as key to defending democracy. More than half of European funds registered as 'promoting' environmental, social and governance goals were invested in defense assets by the middle of last year, Morningstar Sustainalytics reported in August. That marked a quadrupling since Russia's 2022 invasion of Ukraine, the research firm said."

 

The money-making opportunities seem unlimited, particularly when there are no principles holding you back:

 

"The shift underscores how ESG investing is adapting to a new geopolitical reality. Other major adjustments are showing signs of paying off. Some money managers have cut their exposure to US Treasuries, which slid on Monday on concern the war in the Middle East may trigger another bout of inflation. At the same time, ESG funds that shun fossil-fuel producers for environmental reasons have missed out as oil and gas stocks rallied during the escalating conflict."

 

Unfortunately with ESG, the goal was never a serious attempt to build a more sustainable economy or society.

Take care

David

David Chandler

Strategic Corporate Social Responsibility: Sustainable Value Creation (6e)

© Sage Publications, 2023

 

Instructor Teaching and Student Study Site: https://study.sagepub.com/chandler6e  

Strategic CSR Simulation: http://www.strategiccsrsim.com/

The library of CSR Newsletters is archived at: https://strategiccsr-sage.blogspot.com/

 

Norway Wealth Fund Says AI Caught Risks That Others Missed

By Frances Schwartzkopff

February 26, 2026

Bloomberg

https://www.bloomberg.com/news/articles/2026-02-26/norway-wealth-fund-says-weapons-exclusions-are-hurting-returns