ABSTRACT
There was a time when the late economist Milton Freedman's mantra – “a firm's sole responsibility is to its shareholders,” – was almost all an American business executive needed to know to be successful. The Internet has changed everything. Most significantly – though often overlooked – is its impact on the balance of power. Non-shareholders and non-customers can have as much or more impact on a corporate brand than even institutional shareholders. We no longer live in a republic but a hyper-democracy where the grassroots dictates norms. The model of social issues has been flipped, now coming largely from grassroots activists who force more change more quickly than Washington or Wall Street. Social issues such as voting, #BLM, environmental stewardship, labor, #MeToo, and DEI – including those of the corporate supply chain – are more intrinsic to a brand than the products themselves. There is a time to lead and a time to follow. How do companies navigate this new normal?
