The Decision-Making Studio Podcast

Ep. 245: Michael Posner: On "Conscience Incorporated"

Apr 18, 2025
Michael Posner, a human rights lawyer and director at NYU Stern’s Centre for Business and Human Rights, discusses corporate responsibility and his book Conscience Incorporated. He explores shareholder primacy, short-term pressures on CEOs, ESG limits, trade-offs between climate goals and forced labor, the role of multi-stakeholder initiatives, and when business should defend democracy and human rights.
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ADVICE

Use Values To Win Talent Not Just PR

  • Do recruit and retain talent by demonstrating genuine commitment to climate and human rights, not just marketing or charity.
  • Posner cites CEOs saying younger hires expect employers to take climate and social issues seriously when choosing workplaces.
INSIGHT

Quarterly Investors Shortcircuit Long Term Choices

  • Investor pressure for quarterly returns often prevents CEOs from investing in long-term human rights or sustainability improvements.
  • Many CEOs report human rights never comes up on quarterly investor calls, so short horizons dominate decisions.
INSIGHT

CEO Pay Rewired CEOs Into Short Term Shareholders

  • CEO compensation shifted from stewardship salaries to stock-based pay, turning CEOs into short-term-focused shareholders.
  • Posner links stock futures and buybacks to obsession with rapid share-price gains rather than decade-long company health.
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