The role of corporate boards, and hence of corporations they lead, in addressing America’s growing wealth gap was explored at length by an expert panel convened yesterday by the New England Chapter of the National Association of Corporate Directors.  The themes were important but predictable.

Corporations should understand that the wealth gap is substantial and growing and represents a material threat to America and its businesses.  Action is suggested on two fronts: first to address the current gaps in race, gender and the like by instituting fair pay and by public company disclosure of meaningful statistics presented in a way that allows company-to-company comparisons to inform investors; second, to address root causes because our current system produces a constant flow of ill-prepared citizens who feed into the current wealth gap by reason of poor training and socialization.

Although current profit is of course important, the panel also echoed the Business Roundtable admonition that corporations must understand that ESG programs to address the wealth gap also will foster higher earnings in the long run.

An interesting admonition: corporations which may be on the correct track in their own practices often belong to trade associations or other groups where they pay dues, and where those organizations take contrary positions.  Corporations must speak up.

A personal observation: not mentioned was the issue of housing which to my mind is the root cause of the problem.  Programs that are palliative are important to assist the current work-force but we must stop producing citizens in need of remediation.  Unless we put all people together in communities where the schools, and parenting goals, and social expectations and pressures bring all children upwards in performance and aspiration, “the poor will always be with us.”

In this regard, the general sense of the panel that this is not a task that government can fully remediate misses the mark, as only government can drive long-term equality in establishing communities.  Nor will the task, even if undertaken, be rapid; the panel noted the wealth gap has exploded over the past 40-50 years, and something this big and engrained for so long will not admit of a quick, or even mid-term fix.

A daunting prospect.