Two Megatrends That Will Change the World
On January 1, 2020, we predicted that the forthcoming decade would be characterized by a tech driven ‘fragmentation’ megatrend, which would pervade all aspects of society. Covid-19 has not only massively accelerated this megatrend, it has introduced a consequential layer of disintermediation. These interconnected trends have monumental ramifications for business and society.
Following are some (among many) areas where these trends can best be observed:
Watchdog: Corporations, Trade Groups Gave $170M to Republicans Who Objected to Election Results
The wave of interest in corporate donations is growing and should be of great concern to boards and their investors. In an age of significant intangibles balancesheets, reputation is key. Companies will be increasingly scrutinised and judged on such contributions. The natural follow-on from this scrutiny will be growing focus on lobbing activity and spend. Boards should be reviewing all political interactions with great care.
Airbnb Cancels All Inauguration Week reservations in D.C.
A stunning and not much remarked on action by Airbnb. This raises two questions: is this a new trend for Airbnb, and if so, how will it be applied: for protests, riots or perceived future offenders? Will governments (especially authoritarians) now see the opportunity in pressuring Airbnb to monitor and enforce such cancellations? This could open up a can of worms for tech platforms, in both reputational and legal liability.
Facebook’s Top Democrat Leaves Lobbying Post
Noteworthy that not only did several top board members resign from Facebook in 2018, in protest, now a top lobbyist working for them has also done so. The timing for this resignation is of import, considering Facebook’s culpability after a Washington Post report revealed that a great deal of the Capitol Hill riot was planned on the platform. These numerous signals should send flags up for ESG investors.
Scoop: Google Pausing all Political Ads Following Capitol Siege
Twitter, Spotify, Tiktok and now Google, are banning all political ads on their platforms, which is not surprising considering the risk/reward calculus of minimal revenues from such ads, versus the reputational impacts from airing them. A blanket ban is a blunt instrument, however, and all solutions to date have had positive and negative trade-offs that require a more nuanced understanding of action and effect. The alternative recommendations are: better definition around what constitutes a ‘political ad’, halting microtargetting functions and donating revenues from these ads to either improving the function of well-informed adverts, or to researchers/NGOs working on this topic.
House Democrats Reintroduce Bill to Reduce Lobbyist Influence
Ethics is being underscored in political governance, especially by the new US administration, with likely passage of this reintroduced bill. Its passage would affect corporates who hire ex-officials as employees, board members and lobbyists. Conflicts of interest will be an area of increasing importance going forward, especially for ESG investors. This bill, if passed, will likely act as a gold standard for other authorities both within the US at state level, but also more globally.