Despite its title, WE ARE ALL STAKEHOLDERS (Culture, Politics, and Radical Accountability in the Boardroom) is aimed at a very narrow readership: not merely high-level executives but, as market funds manager and author Shireen Muhiudeen puts it, “fellow ESG-minded, corporate leaders.” ESG stands for Environmental, Social, and Governance, and Muhiudeen’s argument is that “Far from being some extremist, anti-business approach, recognizing that all people hold stake in the activities and consequences of global business forces us to consider the big picture and full timeline.” The book is by no stretch a dispassionate analysis of the pros and cons of ESG principles in corporate governance. Muhiudeen portrays ESG proponents as on the side of the angels, describing those who oppose them as being dishonest, short-sighted, and pursuing only the bottom line.
The 209-page book is divided into nine chapters and three sections titled “Boardroom Culture and Politics,” “What’s At Stake,” and “Agents for Change.” She hits all the key liberal talking points, from climate change to racism to quotas for anyone who “self-identifies as a woman.” A well-written combination of polemic, boardroom anecdotes, and advice, aspiring or existing board members will find the third section most useful, with Muhiudeen drawing on her extensive executive expertise and experience to provide guidance on the technical, legal, and political aspects of being a good board member. She writes, “…this book is a simple challenge to individuals within boardrooms to consider that our corporate decision-making can—and must—be at once profitable and sustainable, both socially and environmentally.” But, since her book is a polemic on these issues, the core question is whether Muhiudeen is a trustworthy proponent. In this regard, some of her omissions and contradictions are worth noting.
For example, she praises China for changing its laws so board directors have more financial liability if found guilty of breaching corporate rules. But she does not note that China is the world’s main polluter, even though she warns about the existential threat of climate change throughout the book. She praises a company named Ayar Labs whose co-founder created a “climate-friendly” 401(K) but doesn’t criticize its ten-member board for having just one non-white person and one woman. And she praises her former employer, American International Group (AIG) for its “transparency and open communication,” along with former CEO Maurice Greenberg, without mentioning that AIG was charged in 2003 with selling fake policies and Greenberg was found guilty of fraudulent transactions in 2016. Given this, the reader should view Muhiudeen’s claims about the benefits of ESG with caution, especially if their goal, as she says in her final sentence, is to “make it our business to build a better world.”
A well-written combination of polemic, boardroom anecdotes and advice, Shireen Muhiudeen’s WE ARE ALL STAKEHOLDERS provides analysis of the pros and cons of ESG principles in corporate governance.
~Kevin Baldeosingh for IndieReader