I’m sure that most of you, as with me, heard the expression, “If everyone jumps off a cliff, would you do it too.” It is a simple admonition to keep us from following the mistakes of others. Perhaps it was used a little too much as it did somewhat lose its effectiveness on many. Nonetheless, there is something to it. Just because others do things, that doesn’t make it the smart thing to do. Sometimes, the rush by others can be downright dumb.

Not to make a jump to another subject, but I frequently go up and down I-55 between Southaven and Hernando. As I do, I see this big sign on the side of a building. It made me wonder, just who are they? Just what do they do? Finally, I looked them up on the web. Mostly, it wasn’t that surprising. However, I’m going to leave their name out and what they do in this post. I see no point in disparaging them here.

The thing is that just as I was about to leave their web site, I saw their ESG (Environmental, Social and Governmental) statement. It is one of those things that is not required by law, but it would seem everyone is doing it. Everyone seems to be jumping off that cliff, despite all the admonition of their parents.

The Budweiser corporation jumped off that cliff and it almost drove them into bankruptcy. The Disney Corporation decided to make the jump and their stockholders are still smarting. I noticed some outfits are trying to straddle the fence, that is, they are making it look as if they are jumping without actually jumping. When I went into Firestone the other day to have my HHR worked on, they had a small, almost unnoticeable little statement on one of their advertising boards. It made me wonder what they would say if I asked them about it.

Why the sudden change? What happened that companies risk losing significant income just so they can suffer the income loss as with everyone else? Moreover, even worse, purposely, intentionally they are giving up market share. People are still drinking beer, just someone else’s. People are still buying clothes, just not from Target.

People have buying habits. When they change people they do business with, it tends to be permanent. If those people who used to drink Bud, decide some other brand is better, they just might not return. In other words, this stupidity might have long-term damage.

Well, it used to be, that is to say in times past, it was the duty and the purpose of corporate boards to make money for the owners of the company, that is to say, the shareholders. It seems Old Joe did not like that concept. He could not change the law but he did make the suggestion that it would be a good idea that all companies have a different policy. He wants the corporate boards to make decisions made on the effect to environment, to social biases and governmental issues. The last, just so you know, means, how it effects the dems.

As I say, it is not required. It is not law. However he is pushing it just as far as he can with the power he has. And, as you can see, it is having its affect. For some reason, corporations seem to think it will help them to join the crowd and make the leap, knowing that it will be disastrous to their bottom line, and, of course their stockholders.

It does make me wonder, what the stockholders of Target are thinking right now, as they saw their stocks plummet. I think we know what the Budweiser stock holders are thinking… damage control. I have seen a few of the commercials since their leap into ESG and it looked an awful lot like they were trying to do some serious backing up, all the while, trying to make if look as if they aren’t retreating. They’ve trotted out their Clydesdales and given to the veterans. I wonder just what is next. Well. I know what would be best. A simple statement of admission to the mistake and an apology. However, if you’re waiting for that to happen, you can forget it. That alphabet soup group will not let that happen.