Corporations are some of the most powerful entities in the world. They shape economies, produce consumer goods, provide jobs, impact political decisions, and influence whether economic development is sustainable and whether the planet will remain habitable. How can progressives help shape what corporations do? Lee Drutman has an answer.

According to Drutman, business leaders and think tanks now believe that a “destructive short-term focus” has “infected American capitalism in recent years,” and they instead want to focus on the long- term. The short-termism of today has largely been caused by quarterly earnings reports, which constrain the ability of corporations that invest in the future.

[I]t gets real hard to justify things that will eventually be profitable. In such a world, business's only responsibility is to make money for its shareholders -- now! This puts executives in a tough position: ship jobs overseas, pollute, and generally cut corners to meet the numbers today, or see your company's stock price go for a serious tumble tomorrow, taking your stock options with it.

Shifting away from such a world seems desirable. Thinking about the long-term could allow corporations to value energy-saving practices that may cost more now but will save money later. It could allow corporations to think about investing in new technologies or creating a sustainable business model that works for both shareholders and workers.

Looking through [various cited] reports, one gets the sense that business leaders are not sure how to think about and measure long-term value. This is new territory, and there are competing views.

Whatever metric is put into place, corporations will seek to achieve it. So getting involved in the debate would mean that progressives have the opportunity to shape what goals corporations have. This is a worthy project. As Drutman notes,

More progressive voices need to get into the conversation and think about ways to define long-term corporate value so it includes social and environmental concerns. A window is opening in the debate over what could and should go into a long-term measure. But progressives need to act quickly. It may not be open long.