Profits, Not D.E.I., Are Why Companies Exist

A prominent group of chief executives said almost six years ago that making profits for shareholders was only part of their business — and not necessarily the main part.Speaking collectively as the Business Roundtable, C.E.O.s from companies like Johnson & Johnson, FedEx, Wells Fargo and Amazon said that, really, they were devoted to serving employees and customers, protecting the environment and treating suppliers ethically.Thank you, I wrote in a column back then.And may I sell you a bridge?Now that many companies are muting their commitments to programs embracing diversity, equity and inclusion, as well as to environmental sustainability, I can’t say I’m shocked.The Trump administration has declared D.E.I.

to be “illegal” and “immoral.” It has derided efforts to ensure “sustainability” and stave off climate change as misguided undertakings that are only weakening America.Faced with the administration’s threats of litigation and investigation, corporate America is, to a large extent, bending with the political wind.

My colleagues, here and at other news organizations, have been documenting the retreat on these issues by countless companies, including Target, Meta, Google, Goldman Sachs, Morgan Stanley, BlackRock and Vanguard.The spectacle of corporations changing their posture in waves, like groves of saplings in a storm, may seem startling.But corporations have always done this.What we’re seeing now is an accelerated version.

In fact, it’s what Milton Friedman, who was both a Nobel laureate economist and a high priest of conservative, free-market ideology, said they should do.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access.If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Ti...