Accountable: A Review

My reading of Warren Valdmanis and Michael O’Leary’s Accountable: The Rise of Citizen Capitalism, could not have come at a better time. Valdmanis, a Dartmouth ‘95 and HBS graduate, showcases his expertise with this project. I say project for a reason: while all of the book’s chapters are interrelated, I believe that each could stand on its own and would make an excellent class reading. Although every chapter revolves around Valdmanis’ idea of a reformed capitalism that serves our society in more than just a short-term financial role, each focuses on a group of companies interrelated either through a key deal or by similar or contrasting business practices. 

Valdmanis and O’Leary’s analysis of the companies’ actions is thoughtful and realistic, but it is their analysis of the way companies are interacting with the economy and world as a whole that is the purpose of writing the book. With a name like Accountable, I was slightly worried that the authors would serve me the same superficial solutions the modern, radical left continues to propose for issues not only concerning the economy, but also gender and race. Although the authors raise some of these far-left ideas by quoting and paraphrasing major Democrats, they quickly debunk them for their lack of substance. For example, “solutions” such as college endowment divestment are properly invalidated. Instead of simply complaining about what some corporations are doing wrong, the good practices of others are also highlighted. The authors’ analysis and discussion of effective redress to the problems of crony capitalism is quite superb. Throughout, they provide real and substantial solutions that attack the issue at the core rather than subverting it. The extreme difficulty of the change that needs to happen is appropriately addressed and discussed, even incorporating the words of Andrew Kassoy. The authors use his quote that, “It’s just too much to ask benevolent CEOs—even if they’re well meaning and believe in it—to act differently when all of the other incentives in the system are the same.” 

With a name like Accountable, I was slightly worried that the authors would serve me the same superficial solutions the modern left continues to propose for issues…Although the authors raise some of these far-left ideas by quoting and paraphrasing major Democrats, they quickly debunk them for their lack of substance.

This straightforward and logical argumentation is utilized throughout the book. By consuming the book as a whole instead of just reading a few chapters, Valdmanis and O’Leary’s argument strengthens as potential rebuttals are addressed and the core of the present economy is examined. 

Comparison is central to this work. Whether it is the difference in the practices of Kraft Heinz and Unilever, Etsy’s choice to generously extend its parental leave policy even when its stock price was at a low, these real world examples are vehicles for Valdmanis and O’Learly’s writing. In the Etsy case, CEO Chad Dickerson was butting heads with all of his shareholders, who did not want to expend the funds to cover longer parental leave while the stock was trading low. The validity of these “vehicles” instead of hypotheticals makes for cohesive arguments throughout the book. 

I appreciate the authors’ extensive research. Hypotheticals are rarely used—instead recent examples from actual companies are employed. Not only does this allow for the issues to be clearly presented, but it provides any reader with the opportunity to dive deeper into each chapter by doing their own research about the various companies named. 

For Christians hoping to work or who already work in the corporate business world, Valdmanis and O’Leary’s work gives practical insight into how to align our work with our religious values. The right solutions, centered around running companies with a stronger mission (not simply profit or revenue), seem to be a more effective application of Christian ethics in our careers rather than solely focusing on profits and subsequently donating a portion of acquired wealth. As a catholic myself who plans to go into the corporate business world after I complete my undergraduate degree, I have often questioned whether it is truly the right path for me as a faithful individual. By accepting the viewpoint that Valdmanis provides in my own business practice, I see a clearer connection between my career path and my faith.

For Christians hoping to work or who already work in the corporate business world, Valdmanis and O’Leary’s work gives practical insight into how to align our work with our religious values. The right solutions, centered around running companies with a stronger mission seems a more effective application of Christian ethics in our careers rather than solely focusing on profits and subsequently donating a portion of acquired wealth.

In a similar way, the book’s nuanced discussion of capitalism, that we should address long-term issues such as the climate but without the fiscally liberal policies, gives conservatives a way to address society’s most pressing issues while preserving the free market. The mindset that we are handed in Accountable is removed from the far right, the “flat earthers” per se, all the while keeping the integrity of our conservative fiscal opinions intact. This book is not about big government or strong regulation, it is about a cultural shift in the corporate world that would serve every member of our society in the long term. 

Nevertheless, Accountable has a notable dearth of actionable steps. Although the proposed solutions to this grand issue are apparent, they are fairly broad. “Holding corporations accountable to a deeper purpose” could be done in many different ways. In some chapters when the example company used was working for a deeper purpose, it is apparent how to run a company using this responsible mindset. I simply would have liked to understand the actions one can take to shift a corporation from purely working for profit towards a more significant and valuable purpose. 

I believe now is the perfect time to read Accountable. It opens by addressing the flaws of the inpatient, shareholder-focused business model that focuses solely on profits. As of January 2021, despite a global pandemic, mass rioting over the summer months, and the most divided America any of us have seen in our lifetimes, stock prices continue to hit record highs. And yes, while some of this can be attributed to the fiscal policy of the Trump administration, it is important to consider how a culture that has become ever so focused on share prices and business practices that are often enacted to serve shareholders at the cost of stakeholders or society’s well-being has inflated the stock market even more. A shift in the direction of the book’s position would inevitably lead to a decline in the market in the short run.