Index
Note: Locators followed by the italicized letter n indicate material found in notes.
Ackman, Bill, 42
“active investing,” 139n14
activist funds, 39–40
Aetna, 91
Affluence and Influence: Economic Inequality and Political Power in America (Gilens), 113
African Americans, liquid wealth of, 33
age, in wealth/income inequality, 109
agribusiness, industrial, 100
Alaska Permanent Fund, 62–63, 123–125
Alger, Horatio, 99
Alito, Samuel, 20
Allergan, 42
Amazon, 16, 28, 46, 91, 100, 113
Americans for Prosperity, 46
American values
in Citizen Capitalism, 97–98
civic engagement, 103–105
egalitarianism, 98–100
individual liberty, 100–102
Apple, 30
The Atlantic, 107
automation, 111–112. See also rising inequality
Bakan, Joel, 21
Bangladesh, 23–24
Basic Income: A Radical Proposal for a Free Society and a Sane Economy (Van Parijs and Vanderborght), 120
Bausch & Lomb, 41
benefit corporations, 65–66
Berkshire Hathaway, 45
Biovail, 41
Blackrock mutual funds, 20, 143n7
boards of directors
in corporate governance system, 29–31
proxy advisory services and, 37–38
Bogle, Paul, 139n14
Boston College (Center on Wealth and Philanthropy), 61
Bowling Alone: The Collapse and Revival of American Community (Putnam), 103
BP, 3. See also fossil fuel companies
Branson, Richard, 120
Buffett, Warren, 42, 45, 52, 68–69, 70, 100, 146n24
Burwell v. Hobby Lobby Stores, 20
business corporations. See also corporate governance system
contributions/benefits of, 16–17
engaging/harnessing power of, 2–3, 6–8
market pressures and, 45–46
positive power of, 78
power/pervasiveness of, 15–16
purpose of, 6
relationship between politics and, 81
as social/economic problem-solving force, 1–2
tax strategies of, 17
undesirable contributions of, 18–19
business judgment rule, 20
campaign contributions, 90, 100
Canadian Business, 42
Capital in the Twenty-First Century (Piketty), 86, 107, 113
capitalism
Adam Smith on, 85–86
declining popularity of, 87
government and, 85
public interest and, 86
capitalist principles, embrace of
belief/investment in the future, 91–93
openness/transparency and, 88–90
repayment of debts, 93–96
case studies
Grameen Danone, 23–24
Hindustan Unilever Limited, 22–23
Valeant and Value Act, 40–43
Center on Wealth and Philanthropy, 61
Centers for Disease Control and Prevention (CDC), 109
Chevron, 3. See also fossil fuel companies
“Chicago School” (of economics), 19–20
The Chickenshit Club (Eisinger), 115
chief executive officer (CEO). See also Pearson, Mike
boards of directors and, 30–31
corporate governance system and, 27–28, 38
Citigroup, 65
Citizen Capitalism. See also American values; capitalist principles, embrace of; donations, motivations for; Universal Fund (Fund)
basic elements of, 4–6
as intervention, 115–118
next step toward, 131–134
obstacles/hurdles to, 11, 127–129
vs. other reform proposals, 6
racial/gender divides and, 117
shareholder value and, 10
UBI comparison, 11
“citizens’ dividend,” 122–125
citizen shareholders, loyalty of, 64–67
civic engagement
Citizen Capitalism and, 1, 10, 97, 105, 118
demographic differences and, 109
Putnam on, 103
Tocqueville on, 103
climate change
business corporations and, 2
fossil fuel companies and, 3, 18–19, 21
responsibility to future generations, 94
as social problem, 1
Coca-Cola, 65
community loyalty, 64–67
Corning Incorporated, 17
corporate governance system
boards of directors in, 29–31
broader participation in, 9
Citizen Capitalism and, 3
corporate entities in, 28–29
decision making in, 28
description of, 27–28
fixing the system, 44–47
fund portfolio managers in, 35–36
hedge funds in, 39–40
proxy advisory services and, 37–38
corporations/business corporations
contributions/benefits of, 16–17
engaging/harnessing power of, 2–3, 6–8
market pressures and, 45–46
positive power of, 78
power/pervasiveness of, 15–16
purpose of, 6
relationship between politics and, 81
as social/economic problem-solving force, 1–2
stock ownership in, 7
tax strategies of, 17
undesirable contributions of, 18–19
Costco, 65
Cultivating Conscience: How Good Laws Make Good People (Stout), 82, 128
customer loyalty, 64–67
Danone/Grameen Danone, 23–24, 137n27
debts, repayment of, 93–96
Dell, Michael, 45
Democracy in America (Tocqueville), 103
Dick’s Sporting Goods, 65
dividends/dividend yield
“citizens’ dividend,” 122–125
corporate governance and, 27
corporations and, 17
gifting of, 55
institutional shareholders and, 32
right to receive, 31
typical range of, 62
in Universal Fund, 11, 53, 122–125
donations, motivations for
customer/employee/community/national loyalty, 64–67
immediate advantages, 63–64
of individuals, 68–69
long-term shareholder acquisition, 67–68
nonfinancial benefits, 70–73
Dutch East India Company, 92
economic inequality, 7, 19, 108, 110. See also rising inequality
The Economist, 107
egalitarianism, in Citizen Capitalism, 98–100
Eisinger, Jesse, 115
employee loyalty, 64–67
environmental, social and governance (ESG) funds, 140n16, 145n10
environmental destruction. See climate change
Environmental Protection Agency, 137n14
EpiPen, 43
estate taxes, 69
exchange traded funds (ETFs), 44, 57, 143n7
Exxon, 3, 91. See also fossil fuel companies
Facebook, 15, 19, 45–46, 65, 72, 120, 138n9
Fair Shot: Rethinking Inequality and How We Earn (Hughes), 72, 107, 120
Fink, Larry, 20
Foroohar, Rana, 86
fossil fuel companies, 3, 18–19, 21
Frank, Robert, 122
Franklin, Benjamin, 102–103
Freedom of Information Act, 88
free markets, problem solving and, 8, 11, 13, 44
Friedman, Milton, 19, 120, 121, 127
fund managers
“active investing” by, 139n14
compensation of, 36
in corporate governance system, 35–36
influence of, 33
“futility thesis,” 129
future, hope for the, 91–93
future generations, responsibility to, 72, 80, 94–96, 132
Gallo, Alberto, 111
Gates, Melinda, 70
gender, in wealth/income inequality, 109
General Motors, 92
Gilens, Martin, 113–114
Giving Pledge, 52, 70, 146n21, 146n24
Good-Guide, 64
Government in the Sunshine Act, 88
Graeber, David, 94
Grameen Danone, 23–24
Green Globe, 64
Griftopia (Tiabbi), 114
Hammond, Jay, 124
Harari, Yuval Noah, 112
“Harrison Bergeron” (Vonnegut), 98–99
Henry, Patrick, 100–101
Hindustan Unilever Limited, 22–23
Hirschman, Albert, 128–129
Hobby Lobby Stores, Burwell v., 20
Hudson’s Bay Company, 92
Hughes, Chris, 72, 107, 120–121
income insecurity, 1. See also rising inequality
individual (retail) shareholders, 32, 34–35, 37. See also shareholders
individual liberty, 100–102
industrial agribusiness, 100
inequality. See rising inequality
infrastructure decay, 4
innovation
capitalism and, 86
egalitarianism and, 99
long-term results and, 78
long-term shareholders and, 88, 95
low levels of, 1
social contributions from, 17
value of corporations and, 131
In Our Hands: A Plan to Replace the Welfare State (Murray), 120
institutional shareholders, 6, 25, 32. See also shareholders
Institutional Shareholder Services (ISS), 28, 37–38, 42, 78, 141n20
Iroquois Nation, 94–95
“jeopardy thesis,” 129
job losses, automation and, 111–112
Jobs, Steve, 30
Journal of the American Medical Association, 3, 109
Kalanick, Travis, 30
Keynes, John Maynard, 112
King Arthur Flour, 65
Koch, Charles, 46
Koch, David, 46
Koch Industries, 46
“legal person,” corporations as, 28
Levi Strauss, 65
liberty, individual, 100–102
life expectancy, differences in, 3, 108, 143n6
liquid wealth, 33
lobbying/campaign contributions, 18, 87–88, 90, 100
Lockheed Martin, 100
“lock-up” period, 39
loyalty, as donation motivation, 64–67
Makers and Takers (Foroohar), 86
Marathon Pharmaceuticals, 41
Martha Stewart Living, 30
McKinsey, 111
Medicaid/Medicare, 51, 114, 121–122, 148i11
middle class, erosion of, 110. See also rising inequality
Murray, Charles, 120, 121–122, 154n6
mutual fund managers, compensation of, 25
mutual funds
BlackRock, 20
hedge funds and, 39
indexed funds and, 44
institutional shareholders and, 32–34
performance of, 143n1
as pooled investment vehicles, 57
proxy advisory services and, 38
share repurchases by, 63
Mylan (pharmaceutical company), 43
national loyalty, 64–67
National Philanthropic Trust, 70
“negative income tax,” 120
New Deal, 127
New York Times, 100
Norquist, Grover, 101
Norway, sovereign wealth fund of, 125
Occupy Wall Street, 86, 110–111
Organisation for Economic Co-operation and Development (OECD), 110
Otis Elevator Company, 95
Oxfam International, 108
Page, Benjamin, 114
“Panama Papers,” 89
Parkland High School, 65
“passive” shareholders, 44
Patagonia, 65
“perpetual entities,” corporations as, 29
Pershing Square (hedge fund), 42
personal liberty, 100–102
“perversity thesis,” 129
Pew Charitable Trust, 108
Pirsig, Robert, 131
political power/influence, 113–115
politics, relationship between business and, 81
popular discontent, reduction of, 1
poverty/poverty reduction
Alaska Permanent Fund and, 62
asset poverty rates, 151n10
business corporations and, 2, 4, 18, 22
extreme inequality and, 110
as social problem, 1
The Price of Inequality (Stiglitz), 99, 107
“primordial debt,” repayment of, 93–96
private donations, availability of, 61–63. See also donations, motivations for
private ordering
Citizen Capitalism and, 8–9, 101–102
as governing force, 13
vs. open marketplace, 14
power of, 4
private organizations, examples of, 13–14, 127–128
private property, vs. individual property, 87
productive capital, ownership of, 112
Project Shakti (Unilever), 22–23
“prosocial” behavior, 21
proxy advisory services
in corporate governance system, 37–38
as nonprofit enterprises, 79
SEC rules and, 139n12
selection/payment of, 75–77
transparency of, 78
Universal Fund shares and, 58–59
public companies
“going private,” 45
vs. private companies, 28
Putnam, Robert, 103
racial tensions/divide, 1, 109, 117
Raising the Floor: How a Universal Basic Income Can Renew Our Economy and Rebuild the American Dream (Stern), 119–120
religious traditions, 70
repurchased shares
by Corning Incorporated, 17
donation of, 67–68
fund managers and, 36
shareholder value and, 39, 139n16
responsibility, to pay debts, 93–96
retail shareholders. See shareholders Rewriting the Rules of the American Economy: An Agenda for Growth and Shared Prosperity (Stiglitz), 114
The Rhetoric of Reaction (Hirschman), 128
rising inequality
automation and, 111–112
Citizen Capitalism as intervention, 115–118
harms of, 110–111
political power/influence and, 113–115
returns to capital/labor, 111–112, 118
as social/critical problem, 1, 107–109
UBI proposals and, 119
wealth tax and, 113
Rolling Stone, 107
Roosevelt, Franklin, 127
Roosevelt Institute, 114
Rosett, Claudia, 86
Royal Dutch Shell, 2–3, 135n3. See also fossil fuel companies
rural unemployment, 22
Rushkoff, Douglas, 111
Sanders, Bernie, 87
Securities and Exchange Commission (SEC), 41, 76, 139n12
Seventh Generation Principle (Iroquois Nation), 94–95
shareholders
categories of, 32
individual (retail) shareholders, 32, 34–35, 37
institutional shareholders, 6, 25, 32
rights of, 31
voting by, 34–35
shareholder value
activist funds and, 39
Citizen Capitalism and, 10, 92
executive incentivization and, 140n16
ISS and, 42
mistaken mantra of, 19–22
proxy advisory services and, 82
tyranny of, 7
The Shareholder Value Myth: How Putting Shareholders First Harms Companies, Investors, and the Public (Stout), 19
share repurchases
by Corning Incorporated, 17
donation of, 67–68
fund managers and, 36
shareholder value and, 39, 139i16
Shell/Royal Dutch Shell, 2–3, 135n3. See also fossil fuel companies
Shkreli, Martin, 43
Smith, Adam, 85–86
“Smoker’s Rights” movements, 100
socially responsible investment (SRI) funds, 140n16
social purpose corporations, 66
social stock exchanges, 66
socioeconomic mobility, 3, 107
sovereign wealth funds, 50–51, 125
Stewart, Martha, 30
Stiglitz, Joseph, 99, 107, 114
stock ownership
differences in, 108, 117, 138n8
Students for Academic Choice, 89
Sunshine Act, 88
Supplemental Security Income (SSI), 121
sustainability, corporate governance system and, 45
sustainability reports, 65–66
tax deductions, 51–52
Throwing Rocks at the Google Bus: How Growth Became the Enemy of Prosperity (Rushkoff), 111
Tiabbi, Matt, 114
Tocqueville, Alexis de, 91, 103
transparency, capitalist system and, 88–90
Transparency International, 89
Troubled Asset Relief Program (TARP), 115
Turing Pharmaceutical, 43
unemployment
company layoffs and, 21
in rural villages, 22
as social problem, 1
supplemental income and, 118
UBI proposals and, 121
Union Pacific, 95
Universal Basic Income (UBI)
Citizen Capitalism comparison, 11, 58, 119–122
rising inequality and, 113
Universal Fund (Fund). See also Citizen Capitalism; donations, motivations for
as aggregator of collective interests, 25
anticipated accomplishments of, 132
asset donations to, 51–52
basic elements of, 5–6
citizen-share ownership criteria, 49–50
as community of influence, 118
dividend proposals for, 11, 53, 122–125
eligibility for, 115
framework for, 9
fund administration, 56–58
government program eligibility and, 148n11
income availability from, 62
long-term results focus of, 10
means testing and, 50
mutual fund comparison, 49
pass-through of income, 53
payment of proxy services, 75–77
reversion of interests on death, 52, 54
sovereign wealth fund comparison, 50
tax deductibility and, 51–52
trading/gifting/bequeathing shares, 54–55
voting of shares, 58–59
wealth creation and, 116
“universal investor,” 142n1
“universal owner,” 142n1
“Unlimited Potential Group” (Microsoft), 24
UPS, 65
US Government Accountability Office (GAO), 37–38
Valeant Pharmaceuticals, 40–43
ValueAct (hedge fund), 40–43
Vanderborght, Yannick, 120
Vanguard Funds, 57, 139n14, 143n7
Van Parijs, Philippe, 120
Vodafone, 24
Vonnegut, Kurt, 98–99
voting
citizen capitalism and, 79–83
of Universal Fund shares, 58–59
Warren, Elizabeth, 124
Washington Post, 46
wealth holders, gap between, 3, 33, 138n8
wealth inequality, 107, 116–117. See also rising inequality
wealth tax, 113
women, wealth/income inequality and, 109
World Economic Forum, 111
Zen and the Art of Motorcycle Maintenance (Pirsig), 131