Global Capitalism, Trust and Accountability Conference: Introductions and Opening Remarks

Key Concepts:

• Global Capitalism
• Trust and Accountability
• Democracy
• Interdisciplinary Research
• Corporate Governance
• Financial Crisis
• Corruption
• Regulation
• Stakeholder Engagement

1. Introduction and Welcome (Peter DeMarzo):

• Peter DeMarzo, interim dean at the GSB, welcomes attendees to the Global Capitalism Trust and Accountability Conference.
• The conference is part of the newly launched program on Capitalism and Democracy, a collaboration between the Stanford Graduate School of Business (GSB) and the Center for Democracy, Development, and the Rule of Law (CDDRL).
• The program addresses challenges at the intersection of markets, policy, and democracy.
• Former Dean John Levin emphasized the program's focus on business decision-making, policymaking, and democratic institutions.
• The conference aims to explore the role of corporations in society, addressing questions often avoided.
• Global capitalism has transformed economies but also created complexities, with corporate structures and financial systems operating beyond the reach of individual governments.
• The goal is to highlight these complexities and foster understanding.
• Anat Admati is acknowledged as the driving force behind the GSB's corporations and society initiative.
• Dee Quo, center fellow at CDDRL, is recognized for her contributions to the program and research on democracy and governance.
• The conference aims to develop frameworks to ensure global capitalism is held accountable and to restore public trust in democratic institutions and markets.

2. Partnership and Concerns (Katherine Stoner):

• Katherine Stoner, director of CDDRL, welcomes attendees and expresses gratitude for the partnership between GSB and CDDRL.
• She highlights the timeliness of the conference given current events, including new tariffs.
• She notes the low levels of trust in governing institutions and questions about the robustness of American democracy.
• Drawing on her expertise in Russian governance, she points out Russia's experience with disillusionment with global capitalism, state encroachment on private property, low trust in government, and lack of accountability.
• She expresses hope that the United States will not undermine the global economic system.
• She thanks Anat and Dee for organizing the program and conference.

3. Conference Goals and Structure (Anat Admati):

• Anat Admati welcomes attendees to the inaugural conference of the Program on Capitalism and Democracy.
• The conference brings together scholars from various disciplines (business, law, political science, economics, sociology, history) and practitioners, activists, and journalists.
• The goal is to build a research agenda and find common concepts and theories across disciplines.
• The relationship between democracy and capitalism is fraying, and the conference will examine the role of institutions, actors, accountability mechanisms, and norms.
• Admati explains her personal motivation stemming from the financial crisis, which revealed the limitations of financial economics as a discipline.
• She emphasizes the need for interdisciplinary engagement to understand complex interactions among people and institutions.
• She acknowledges the challenges of interdisciplinary work within academia.
• The conference builds on a previous virtual conference in December 2020 on corporations and democracy.
• The conference will focus on trust and accountability, basic law, law enforcement, and corruption.
• Discussants will connect the dots between panelists' presentations.
• Keynote speakers include Tom Wright on the 1MDB scandal and Judge Reichov on cryptocurrency.
• The final session will be a closed brainstorm session to reflect on what was learned.
• The conference aims to explore why trustworthiness is important for global capitalism, why it's elusive, and what to do about it.
• The first panel will explore trustworthiness in relation to capitalism and democracy.

4. Key Arguments and Perspectives:

• Interdisciplinary Approach: The speakers emphasize the necessity of moving beyond disciplinary silos to understand the complex interactions between global capitalism, democracy, trust, and accountability.
• Erosion of Trust: The speakers express concern about the declining trust in institutions and the potential undermining of democratic principles and the global economic system.
• Accountability Mechanisms: The conference aims to explore and develop accountability mechanisms to ensure global capitalism lives up to its promise and restores public trust.
• Role of Corporations: The conference seeks to address difficult questions about the role of corporations in society and their impact on democracy and governance.

5. Notable Quotes:

• John Levin (former Dean): The program would be centered "exactly at the intersection of business decision-making, policymaking, and the foundations of democratic institutions."
• Anat Admati: "The complex interactions among people and institutions across private sector and governments around the globe is what's going on is the key to what's going on."
• Anat Admati: "Our research, our teaching, our impact, the world will be better off when we do it." (referring to interdisciplinary collaboration)

6. Technical Terms and Concepts:

• Global Capitalism: The worldwide economic system characterized by private ownership, free markets, and the pursuit of profit.
• Trust and Accountability: The degree to which individuals and institutions are reliable, transparent, and responsible for their actions.
• Democracy: A system of government in which power is held by the people and exercised through elected representatives.
• Interdisciplinary Research: Research that integrates knowledge and methods from different academic disciplines.
• Corporate Governance: The system of rules, practices, and processes by which a company is directed and controlled.
• Financial Crisis: A situation in which the value of financial institutions or assets declines rapidly.
• Corruption: Dishonest or fraudulent conduct by those in power, typically involving bribery.

7. Logical Connections:

• The introduction sets the stage by highlighting the importance of the conference and its goals.
• Katherine Stoner's remarks connect the conference to broader concerns about the state of democracy and global capitalism, drawing on the example of Russia.
• Anat Admati provides a detailed overview of the conference's structure, goals, and the need for interdisciplinary collaboration.

8. Synthesis/Conclusion:

The conference aims to address the complex challenges at the intersection of global capitalism, trust, accountability, and democracy. It seeks to foster interdisciplinary research, develop accountability mechanisms, and restore public trust in institutions. The speakers emphasize the importance of understanding the role of corporations in society and the need to move beyond disciplinary silos to address these complex issues effectively.