.WEF attendees increasingly aware of public perception; CEOs cutting back on lavish parties.
The World Economic Forum in Davos, Switzerland is often criticized for its participants’ tendency to discuss climate change while flying in on private jets. The WEF has responded by saying it offsets all travel by buying carbon credits, while some CEOs have opted to fly commercial to reduce their carbon footprint. This year’s forum, however, showed that the global elite are starting to become more aware of how their behavior is perceived.
S&P Global CEO Doug Peterson told Yahoo Finance that people are becoming more conscious of this issue. He also said he chooses to fly commercial for international trips. The Yahoo Finance team shared a commercial flight with another top U.S. CEO on their way back from the forum.
Executives are also being pressured by their employees to be good corporate partners. Cisco CEO Chuck Robbins said employees care about culture and purpose, and that salary is no longer the top priority. Cloudflare CEO Matthew Prince also decided to tone down the company’s usual lavish party due to the current economic climate.
Tech executives, in particular, are aware of the optics of spending lavishly while cutting costs at home. Microsoft reportedly hosted Sting and 50 attendees at a party early in the week, before announcing lay-offs of 10,000 people. Salesforce also held a party, but the news was sandwiched between earlier lay-offs and the announcement of activist investors taking stakes in the company.
BlackRock CEO Larry Fink has also been attacked by activists on both sides for his ESG investing. He said the attacks are now personal, and that this year’s conference has shown that CEOs are trying to straddle a tricky line between business and philanthropy.
The heightened awareness at the World Economic Forum this year reflects a greater caution from companies and their leaders. With the global economy slowing, investors can expect to see more tact from Corporate America in the coming year. This includes not only managing their balance sheets, but also their public images.
News Source