A Director’s Higher Calling

Boards must enhance the workforce for the benefit of all citizens.

Directors are entrusted with the oversight and strategic direction of some of the world’s most influential private-sector companies. Traditionally, their primary responsibility has been to maximize shareholder value, often with a focus on financial returns. However, in the evolving landscape of global capitalism, this narrow view is increasingly being challenged. There is a growing recognition that directors have a higher calling beyond merely making shareholders richer; they must play a pivotal role in educating the U.S. workforce, for the benefit of all citizens and the long-term sustainability of our economic system.

The task of educating our workforce should not be left solely to social media, unions, public schools or the entertainment industry. Corporate directors must lead a nationwide effort to help citizens understand and appreciate the tenets of our economic system, thereby supporting the United States’ unique brand of capitalism and ensuring that it is sustainable and beneficial for society as a whole.

Generational Changes in the U.S. Workforce

The U.S. workforce of 160 million people is dynamic and diverse, reflecting the nation’s complex economic system, and spans a wide range of industries. It has historically been the backbone of robust capitalism. However, with each passing generation, the workforce has become more accepting of socialism. Generation Z views socialism more positively than previous generations, especially in the United States. In a 2018 Gallup poll, 51% of Americans aged 18 to 29 — young Millennials and older Gen Z — have a positive view of socialism, compared with 45% who have a positive view of capitalism. According to a 2024 report from Edelman, 70% of Gen Zers around the world say they’re involved in a social or political cause. They are passionate activists. The young will become key constituents of our workforce, including our employees, our suppliers, our investors, our colleagues and even the policymakers and judges who oversee all private sector business matters.

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As we adopt more and more socialistic principles in our society, corporate governance principles become less important and the clout of directors diminishes. Thus, socialism is a clear and present danger to free markets and corporate governance. Why are we allowing this trend to grow unchecked and unchallenged? We have a higher calling to protect our economic system.

The Role of Directors in Workforce Development

Directors occupy a unique position at the intersection of business strategy and societal impact. They have the power to influence corporate policies that go beyond profit maximization to include social responsibility and community development. One of the most critical areas where this influence can be exercised is workforce development.

Workforce development encompasses a wide range of activities, including job training, continuing education, leadership development and community engagement. According to the National Association of Workforce Boards, there are over 540 workforce development boards in the United States, yet very few directors serve on these boards. This is a significant missed opportunity, as workforce development is not just a matter of training employees for specific jobs; it is also about shaping the future of the economy and ensuring that the workforce is equipped to sustain the nation’s unique brand of capitalism.

Directors need to step up and join these workforce development boards. By doing so, they can provide a macroeconomic perspective that is often missing from the discussions led by corporate executives and managers, who tend to focus on the more immediate, microeconomic concerns of their individual companies. Directors have a responsibility to ensure that the workforce is not only capable of performing today’s jobs but also prepared to meet the challenges of the future.

Directors must take the lead in educating Americans about the benefits of capitalism. This education should go beyond the traditional focus on profits and shareholder value to include a broader understanding of how capitalism can drive social progress, create jobs and improve living standards. A well-educated workforce that understands the principles of capitalism is more likely to support policies that sustain economic growth and innovation.

A nationwide educational campaign led by directors should include initiatives such as workshops, seminars and public awareness campaigns that highlight the positive aspects of capitalism and its role in creating opportunities for all citizens. National corporate director associations such as National Association of Corporate Directors, Private Directors Association, Women Corporate Directors, Ascend, Latino Corporate Directors Association and American College of Corporate Directors should come together to plan and implement such a campaign.

The Importance of the “Tone at the Bottom”

Much attention has been given to the concept of “tone at the top,” which refers to the ethical climate and culture set by a company’s leadership. However, directors must also be concerned with the “tone at the bottom,” which reflects the attitudes and behaviors of the broader workforce. For decades now, that tone has been slowly turning more and more negative toward private-sector companies. “Trickle-down economics” has become a nasty phrase, whereas in the past it was interpreted to mean that “a rising tide floats all boats.”

The workforce is not just a group of employees; it is a significant segment of the population that includes voters who have the power to influence public policy. If these voters are not well-informed about the benefits of capitalism, they may support policies that undermine the very economic system that provides them with jobs and wealth-building opportunities.

By participating in workforce development boards, directors can help shape the programs and initiatives that influence the attitudes and beliefs of the workforce. They can ensure that these programs not only provide the skills needed for specific jobs but also promote a broader understanding of how capitalism benefits society as a whole. This is not just a matter of protecting corporate profits; it is about preserving the foundations of long-term job creation, high living standards and social progress. If the workforce does not understand the value of capitalism, they may vote for policies that undermine it, leading to economic stagnation and decline.

If Not Us, Who?

In the end, the success of capitalism depends not just on financial performance but on the understanding and support of the workforce. Directors have a crucial role to play in ensuring that this understanding and support are in place. They must rise to the challenge and embrace their higher calling as stewards of the economic system that has brought prosperity to so many. Don’t say, “It’s not our job.” If we don’t do it, other factions of our society will continue to do it, leaving us to deal with the consequences. Letting others define our workforce’s beliefs and viewpoint is the primary reason our board agendas have become so complex.

Directors must recognize that the battle for the future of capitalism is not being fought in boardrooms or on Wall Street; it is being fought in the minds of workers and voters. Directors must take the lead in this battle by ensuring that the workforce is educated about the benefits of capitalism and the dangers of socialism.

About the Author(s)

Dr. Larry Taylor

Dr. Larry Taylor is chairman emeritus of NACD Pacific Southwest, chair of both Guided Compass Technologies and Tone-at-the-Bottom Alliance, and member of the business engagement committee of the Los Angeles County Workforce Development Board.


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