I Companies should focus on stakeholders and values, Business Roundtable says.
The purpose of a company is to serve stakeholders--not just earn money for shareholders--according to a statement from the Business Round-table. The revised Statement on the Purpose of a Corporation was signed by 181 CEOs of the largest companies and reverses the Washington, D.C.-based business lobbying group's long-standing position.
"Businesses play a vital role in the economy by creating jobs, fostering innovation, and providing essential goods and services," the statement notes. The co-signing CEOs commit to delivering value to customers, investing in employees, dealing fairly and ethically with suppliers, supporting their communities, and generating long-term value for shareholders. "These modernized principles reflect the business community's unwavering commitment to continue to push for an economy that serves all Americans," says Jamie Dimon, chairman and CEO of JPMorgan Chase & Co. and chairman of the Business Roundtable.
The Business Roundtable's change of...