The Coalition for Inclusive Capitalism and more than 50 impact-oriented organizations led by U.S. Impact Investing Alliance and B Lab are calling for the creation of a White House Initiative on Inclusive Economic Growth to reshape and rebuild our economy so that it works for all. The proposed Initiative would support the Biden-Harris Administration’s efforts to address three monumental crises facing our nation: the COVID-19 economic fallout, a widening racial wealth gap, and climate change.
The Initiative on Inclusive Economic Growth would prioritize a set of necessary and long overdue structural reforms to our economy and capital markets, including:
- A shift from shareholder primacy to stakeholder capitalism, including financial market reforms that change the rules and incentives for corporations and investors to ensure they account for their impact on all stakeholders, and not just shareholders; and
- A renewed focus on community investing that builds generational wealth and creates new jobs and opportunities in Black, Brown, Tribal, rural, and otherwise underserved communities.
“The vast inequalities in our economic system hurt not only the workers, underrepresented populations, and communities being left behind, but also the wider economy and recovery that they power,” said Meredith Sumpter, CEO of the Coalition for Inclusive Capitalism. “A White House Initiative on Inclusive Economic Growth would help create an economy that is not only more fair and just, but that also produces more dynamic, sustainable growth and social equity over the long term.”
“The unequal impact of COVID-19, especially on communities of color, shows the need for a fundamentally different approach to our economy. We need to incentivize businesses, investors and markets to reevaluate their impact on workers, as well as the community and the environment around them, to stimulate inclusive economic growth,” said Andrew Kassoy, co-founder and CEO, B Lab. “The Initiative will change the rules and incentives for decision-makers on Wall Street to refocus resources on underrepresented stakeholders on Main Street.”
The Initiative would be critical to a coordinated policy agenda that refocuses corporations and investors on real and equitable value creation that promotes quality jobs, thriving communities, and the resilience of our planet.
“We commend the Administration for identifying these critical policy priorities and believe the Initiative is key to accelerating this work, leveraging the principles of stakeholder capitalism and community investing across the federal government in a coordinated way,” said Fran Seegull, president, U.S. Impact Investing Alliance. “There is no better time than now to move the discussion beyond incremental progress and toward transformative change by harnessing private sector tools and capital to better support communities. Impact investors stand ready to partner with the Administration on this Initiative.”
A launch event featured supportive remarks from Darren Walker, president, Ford Foundation and Rachel Carlson, CEO and co-founder, Guild Education, a Certified B Corporation.
“From the justice system to the economy, there are yawning gaps in how people of color experience America,” said Walker. “The creation of a White House Initiative on Inclusive Economic Growth is one step toward addressing the inequality and systemic racism that has been baked into the foundation of our economic systems. By working together, government and the private sector can implement long-needed structural reforms to create an America that works for everyone.”
“Building an inclusive economy for all Americans is imperative — now more than ever. At Guild Education, we are focused on closing the upskilling and opportunity gap for the American workforce, and we are grateful to partner with like-minded organizations on this important initiative,” said Carlson.
“You wouldn’t believe it from watching cable news, but my 30-year career in business and philanthropy has taught me that most Americans desire the same outcomes, including economic opportunity for all,” said Rep. Dean Phillips (D-MN). “Being pro-business and pro-worker are not mutually exclusive endeavors, and as we emerge from a once-in-a-lifetime crisis, we have an opportunity to reimagine the way in which the American economy serves all American communities.”
Sen. Mark Warner (D-VA) also voiced support for the proposed Initiative: “Over the past couple of decades, we have seen the erosion of the American social contract for workers, a hyper focus on corporate efficiency at the expense of long-term resiliency, and an emphasis on short-term shareholder returns instead of long-term investments in innovation and communities. We need an all-of-government approach to building broad-based growth in the 21st century.”
Signatories from the broad-based coalition focused on stakeholder capitalism, corporate social and environmental impact, sustainable finance, community development finance, and capital markets structural reform include:
- The Alliance Center
- American Sustainable Business Council
- Aspen Institute Business and Society Program
- Aspen Institute Economic Opportunities Program
- B Lab
- The B Team
- Better Markets
- Beyond Alpha
- Blended Value Group
- Capital Institute
- Case Impact Network
- Center for Community Investment
- Change Finance
- Coalition for Inclusive Capitalism
- Common Future
- Confluence Philanthropy
- Conscious Capitalism, Inc.
- CREO Syndicate
- Democratic Treasurers Association
- Drucker Institute
- Dry Powder Works
- FCLTGlobal
- Florida for Good
- The Global Impact Investing Network (GIIN)
- Green America
- Impact Capital Managers
- Imperative 21
- Intentional Endowment Network
- Interfaith Center on Corporate Responsibility
- Just Capital
- Lincoln Institute of Land Policy
- National Community Investment Fund
- Natural Capital Solutions
- Nonprofit Finance Fund
- Omidyar Network
- Opportunity Finance Network
- Oxfam America
- Pacific Community Ventures
- PolicyLink
- Predistribution Initiative
- Public Citizen
- Regenerative Recovery Coalition
- The Shareholder Commons
- The Skoll Foundation
- Social Finance
- Social Venture Circle
- Sorenson Impact Center
- Toniic Institute
- Urban Manufacturing Alliance
- S. Impact Investing Alliance
- 1worker1vote
