Good morning.
With the U.S. presidential election less than six months away, and elections also happening in the EU, U.K., India, and many more countries, now is a good time for CEOs to reflect on their company’s relationship to democracy at large. One company that has done so, and seems ready for redemption, is Meta.
Meta has come a long way. Eight years ago, the Trump campaign used improperly obtained Facebook data to build voter profiles for 50 million users, and Russia weaponized Facebook to undermine the integrity of the U.S. elections. The scandals led to Facebook’s darkest hour, and forced its founder, Mark Zuckerberg, to testify before Congress.
But 2024 isn’t 2016. A crucial part of Meta’s response since then has been the creation of an “independent” oversight board. And last week, that group released its key lessons in a historic election year. These are my takeaways:
– A company should think about its principles vis-à-vis democracy and not react only to specific instances. Meta learned this lesson when it blocked former President Donald Trump’s Facebook account after the Jan. 6 attack on the Capitol, which was seen as arbitrary. When it reinstated Trump’s account in 2023, Meta did so based on more broadly applicable protocols.
– Almost no company can be entirely apolitical. Some of the most divisive societal issues concern foundational democratic principles—freedom of speech, equality, limits on government interference—written up in constitutions and human rights charters. A company must know where it stands onsuch values.
– Efforts to interfere with elections often start small or in inexpensive markets. They then move to more expensive markets. Some interference campaigns are subtle, using deep fakes or somewhat credible fake claims. A company must study its weakest points of entry to ensure it’s not a vehicle for such schemes.
– Finally, oversight boards are a good idea for almost any organization. Meta’s self-governing board can be critical of the company, and its supervision ensures Meta is caught off-guard less often by user protest or complaints.
Meta didn’t get it 100% right. One shortcoming of its oversight board is that it still depends on Meta for funding. Over time, that’s bound to lead to problems. But Meta’s approach nevertheless benefits the company—and society—in myriad ways. For Meta, it lowers the likelihood of future PR crises. More broadly, it makes Meta act as a more responsible corporate citizen. That’s in everyone’s interest, and a model to follow.
More news below.
Peter Vanham
peter.vanham@fortune.com
@petervanham
TOP NEWS
Why did Walmart pull the plug on Walmart Health?
Last week, Walmart announced that it would shut Walmart Health, the retail giant’s latest attempt to provide affordable and convenient health care. Former executives say there weren’t enough customers to support the business model that centered on charging low prices and making up the difference with volume. The division also suffered from leadership turnover, as executives grew frustrated with how the retail company operated. Fortune
Tesla sends its ‘fireman’ to China
Elon Musk is sending Tom Zhu, the former head of its China operations, back to the country to shore up the EV maker’s flagging business. Zhu, dubbed internally as the company’s “fireman,” helped turn Tesla’s Shanghai Gigafactory into a top manufacturing center. Tesla’s sales of China-made EVs slipped 18% in April amid China’s bruising EV price war. The Wall Street Journal
Huawei loses its chip access
The U.S. Commerce Department has revoked some export licenses to Chinese tech giant Huawei. The Trump administration imposed a broad ban on the company’s access to chips, yet a few U.S. companies like Intel reportedly got permission to keep selling to Huawei. The Chinese company is returning to the premium electronics market—including an Intel-powered AI laptop—prompting calls in the U.S. to impose further controls. Reuters
AROUND THE WATERCOOLER
Andreessen Horowitz partner says Google is an ‘amazing example’ of employing people in ‘BS jobs’: ‘Half the white-collar staff probably does no real work’ by Eleanor Pringle
‘Gray’ divorce is sky-rocketing among baby boomers. It can wreak havoc on their retirements by Alicia Adamczyk
Kellogg’s is letting workers clock out at 12 p.m. on Fridays—but only if they make up the hours during the week by Orianna Rosa Royle
Billionaire Stan Druckenmiller says he’d give Bidenomics an ‘F’ because inflation almost came down before the Fed ‘fumbled on the five-yard line’ by Paolo Confino
Commentary: Great performers constantly rehearse. Companies that want to survive sustained change must do the same by Ram Charan
Book excerpt: How cities grew fragmented, segregated, and polluted—and why they now strive for walkability, community, and urban nature by Carlos Moreno
This edition of CEO Daily was curated by Nicholas Gordon.
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