Updated Sep 22, 2019

How CEOs trump politicians

Illustration: Aïda Amer/Axios

Walmart, which first banned assault weapon sales and now vaping products, is providing a template of how CEOs can move beyond a monomaniacal focus on profits.

Why it matters: It’s one thing to sign an unenforceable pledge to think more about employees and society, like most members of the Business Roundtable did. It’s another to take specific action while politicians dither.

In conversations with a half-dozen CEOs this week, we were stunned by how much pressure business leaders are feeling to take social action. If so, here’s what they can do:

  • JPMorgan Chase, Starbucks, Walmart, Amazon and many others increased their minimum wage [Updated]. Every CEO has the power to do this.
  • Delta Airlines returns billions in profits to employees — this year, a bonus equal to 14% of their annual pay — and has grown since making this change. Every company can do this. 
  • Amazon this week became the first to sign The Climate Pledge to be net zero carbon across the businesses by 2040 — a decade ahead of the Paris Accord's goal of 2050. An individual company can’t put a dent in overall pollution — but a bunch might.
  • Stripe, the online payment platform, announced last month that it plans to spend at least $1 million a year to pay for direct removal of carbon dioxide from the atmosphere. Stripe said in its emissions announcement: "For other companies: Please reach out to Stripe to join our commitment."
  • Bank of America last year stopped lending money to makers of military-style assault weapons.
  • Dick’s Sporting Goods paid a price in its earning after it initially made it harder to buy firearms in its store, but then went even further this year.

What else can be done:

  • They could also limit CEO pay if they wanted to narrow the gap in their own shop. 
  • All retailers control what’s on their shelves, so if they want to eliminate AR-15s, or vaping, or whatever — free enterprise permits it.
  • All companies control child care, family leave and health policies and can be as generous as they choose. 

The big picture: The new public assertiveness by corporations follows an earlier wave, after President Trump took office, of CEOs taking stands on immigration, climate, gender equality and other issues that their predecessors avoided.

  • Apple's Tim Cook, who has become increasingly vocal, said at a Fortune conference last year: "Apple is about changing the world. It became clear to me some number of years ago that you don’t do that by staying quiet on things that matter."

The bottom line: The pressure on CEOs from employees, customers and communities seems to only be intensifying.

Go deeper:

Go deeper

Updated 23 mins ago - Health

World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

Over 500 schools in South Korea have either closed or postponed reopening, according to the Korea Times, which cites data from the Ministry of Education.

Why it matters: South Korea has been a model for how to handle the novel coronavirus, and the closures reportedly followed concerns from parents and teachers over child safety. The country's confirmed death toll has plateaued at 269 over the past few days, with few increases, per Johns Hopkins data.

Updated 24 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 4 p.m. ET: 5,877,503— Total deaths: 362,731 — Total recoveries — 2,464,595Map.
  2. U.S.: Total confirmed cases as of 4 p.m. ET: 1,735,971 — Total deaths: 102,286 — Total recoveries: 399,991 — Total tested: 15,646,041Map.
  3. Public health: Hydroxychloroquine prescription fills exploded in March —How the U.S. might distribute a vaccine.
  4. 2020: North Carolina asks RNC if convention will honor Trump's wish for no masks or social distancing.
  5. Supreme Court: Senators Grassley, Leahy urge Supreme Court to continue live streams post-pandemic.
  6. Business: Fed chair Powell says coronavirus is "great increaser" of income inequality.
  7. 🚀 Space: How to virtually watch SpaceX's first crewed launch Saturday.

Trump to end Hong Kong’s special trade status

President Trump. Photo: Win McNamee/Getty Images

President Trump announced on Friday that the U.S. would be fundamentally changing longstanding policies toward Hong Kong as a result of Chinese encroachment on the city's autonomy.

Why it matters: Trump said he would be effectively ending the special trade status that has allowed Hong Kong to flourish as a gateway to the Chinese market. That leaves an uncertain future for businesses that operate in Hong Kong, not to mention the city's 7 million residents, and could be met with reprisals from Beijing.