Some of us are doing so while simultaneously advancing science in an effort to help bring an end to the pandemic. Business Roundtable is recognized as a leading, authoritative voice on effective corporate governance. The new Business Roundtable Statement on the Purpose of a Corporation has received a great deal of support, as well as questions and criticisms. Concurrent health, economic and racial crises have made clear how various systems are connected – and that multi-stakeholder capitalism is the answer to addressing our challenges holistically. In its place, the CEOs of Business Roundtable adopted a new Statement on the Purpose of a Corporation declaring that companies should serve not only their shareholders, but also deliver value to their customers, invest in employees, deal fairly with suppliers and support the communities in which they operate. On August 19, 2019, the Business Roundtable (BRT) updated its Principles of Corporate Governance to redefine “the purpose of a corporation to promote an economy that serves all Americans.” CEOs from 181 publicly traded companies signed the Principles that purportedly signaled an end to Milton Friedman’s doctrine of shareholder primacy established in the 1970s. America’s largest employers are taking action to protect their employees and customers, while delivering for the nation under tough circumstances with a dedicated workforce. Past publications of The Business Roundtable that have addressed corporate gover-nance issues include The Business Roundtable’s statement America’s CEOs remain steadfast in our commitment to pursue economic prosperity and expanded opportunity for our employees, customers and the communities we serve. Best Buy Co., Inc. is striving to emerge from crises as both a vital and vibrant company. Business Roundtable is a group of nearly 200 CEOs representing the largest U.S. companies. Business Roundtable CEOs are contributing resources, creativity and innovations to help meet unprecedented challenges facing the country. Then we created special pandemic-relief programs to give members financial breathing room while we boosted our philanthropy to provide more help for military families and the communities where we work and live. I was proud to be among the CEOs to sign the Business Roundtable Statement on the Purpose of a Corporation. From offering competitive wages and benefits to developing training programs to enrich the skills of students and adult workers, leading U.S. employers are creating opportunities for Americans to secure a well-paying job and build a fulfilling career. On Monday 19th August 2019, the Business Roundtable published a new Statement on the Purpose of a Corporation signed by 181 CEOs who commit to lead their companies for the benefit of all stakeholders – customers, employees, suppliers, communities and shareholders. Delta Air Lines is dedicated to a “virtuous circle” that puts employees first, and by doing so, delivers value to all stakeholders. We have built our business around a commitment to make an impact that matters for clients, our people, and society. Business Roundtable member companies alone employ more than 15 million people, and millions more invest in U.S. public companies – either directly or through mutual funds, retirement accounts, or pension plans. On Monday, Business Roundtable released a “Statement on the Purpose of a Corporation.” The Purpose Statement represents a bold vision of the 21st Century corporation … Raytheon Technologies has a history of tackling some of the world’s toughest problems. The Business Roundtable elevated customers, suppliers, and communities to the same level as shareholders in a “modernized” statement on the purpose of corporations. The corporate response to the global pandemic—from protecting and supporting employees, to serving customers and communities, to directly addressing the impact on public health—underscores the critical role companies can play in service to their stakeholders. It was hard to envision then how much the world would change in just one year. Together, we will emerge from this crisis stronger than ever. Taking care of our members, employees and communities during these uncertain times was important. We’ve welcomed the debate and the opportunity to… Statement on the Purpose of a Corporation Americans deserve an economy that allows each person to succeed through hard work and creativity and to lead a life of meaning and dignity. When the Business Roundtable updated its Statement on the Purpose of a Corporation a year ago this week, its members surely didn’t anticipate a global pandemic, a recession of historic proportions and a movement for racial justice becoming mainstream. 52 The Economic and Moral Foundations of the Business Roundtable’s New Statement on the Purpose of a Corporation Atrey Bhargava Abstract: The new statement of purpose at the Business Roundtable (BR) of 2019 marks the formal acknowledgement by the corporate1 sector of the need to re- evaluate the purpose of corporations. Business Roundtable Redefines the Purpose of a Corporation to Promote ‘An Economy That Serves All Americans’ AUG 19, 2019 Updated Statement Moves Away from Shareholder Primacy, Includes Commitment to All Stakeholders WASHINGTON – Business Roundtable today announced the release of a new Statement on the Purpose of a Corporation Vistra Corp. embraces its obligation to be part of the solution whether that be related to social equity, climate change, pandemic or another important issue. Creating long-term shareholder value is a top responsibility and focus for CEOs. CEO, “I welcome this thoughtful statement by Business Roundtable CEOs on the Purpose of a Corporation. Bristol-Myers Squibb. WBA, through our purpose to help people across the world lead healthier and happier lives, has been called upon as never before to respond to this public health crisis in partnership with our many stakeholders. Zoetis starts by investing in employees who are valued for their support of veterinarians, pet owners and food producers. FIS is taking tangible actions – including training and investing – to foster greater diversity and inclusion. We do this through our work on critical global challenges—such as COVID-19, climate, racial equity and justice, education and health—and by working to improve ourselves, including on diversity and our climate footprint. the nation’s companies have held to their commitment and risen to the challenge. When the two crises of 2020 hit – the Covid-19 pandemic and the social unrest sparked by racial injustice – the Purpose galvanized BRT member companies into action. We help bring companionship, comfort and nutrition to the world through healthy pets and farm animals. Schnitzer Steel Industries, Inc. is working to help the communities in which they operate become safer and cleaner. These standards not only promote integrity and accountability for investors, they are paramount to advancing the long-term economic interests of America’s workers, families and communities. Companies have retooled operations to fill critical medical supply shortages, while others are at the forefront of efforts to develop a COVID-19 vaccine. They have raised wages and delivered bonuses to frontline workers. The Business Roundtable has set out a path toward so-called stakeholder capitalism in its highly publicized Statement on the Purpose of a Corporation. And as always, they remained focused on our members’ well-being at a time of great need. As the global leader in animal health, our business purpose is very much a social purpose at Zoetis. to individuals and small businesses hard-hit by the crisis. President and CEO, Through our Principles of Corporate Governance, the Roundtable has for decades provided public companies with modern guidance and best practices to uphold high ethical standards and deliver long-term economic value. Dell Technologies is committed to a multistakeholder approach which will help create an economy that works for everyone. Business Roundtable CEOs reflect on the significance of the Statement on the Purpose of a Corporation and share how they have taken action the past year. Energy companies have vowed to keep power on for customers who are unable to pay. Here, Ball Corporation's Chairman and CEO, John Hayes, outlines the benefits gained when diversity is prioritized at the Board level. Chairman and CEO, US Business Roundtable statement on the Purpose of a Corporation. Today, Business Roundtable — an association of CEOs of the US’ leading companies, working to promote a thriving US economy and expanded opportunity for all Americans through sound public policy — released a new Statement on the Purpose of a Corporation.The statement was signed by 181 CEOs committing to lead their companies for the benefit of all stakeholders — customers, … The Business Roundtable has ... in which the group representing nearly 200 chief executives of large companies updated how it views the purpose of a corporation. The Business Roundtable’s Statement on the Purpose of a Corporation, especially the increased emphasis on commitment to communities, was very well timed. The new Business Roundtable Statement on the Purpose of a Corporation has received a great deal of support, as well as questions and criticisms. There's … The Business Roundtable (BRT) is a nonprofit association based in Washington, D.C. whose members are chief executive officers of major United States companies. Statement on the Purpose of a Corporation Americans deserve an economy that allows each person to succeed through hard work and creativity and to lead a life of meaning and dignity. For more than 90 years, McKinsey has sought to help create positive, enduring change in the world, by putting clients’ long-term interests first, and cultivating an environment where talent of all backgrounds can thrive and contribute to issues that matter. There's … Global CEO, In the months that followed the release of our Statement, Business Roundtable CEOs took action to invest in worker training and education, raise wages, support new employee health and wellness benefits, promote more sustainable businesses and give back to the communities they serve. Million America’s economy, workers and shareholders depend on well-managed, well-governed public companies. Business Roundtable companies have invested in workers, taken a leading role in fighting the pandemic, and supported the communities where they serve. The long-term success of these companies and the U.S. economy depends on businesses investing in the economic security of their employees and the communities in which they operate. In recent weeks, as the nation reckons with racial inequity injustices, CEOs are making new commitments to ensure diversity in their companies. Deloitte. Roundtable CEOs are helping workers adjust to the rapid pace of change in the economy while working to revitalize local economies and ensure more inclusive prosperity. Many are giving generously to support their communities. The U.S. Chamber of Commerce supports every effort to preserve, strengthen, and expand the American dream, and put it within the reach of every child, family, worker, and entrepreneur. Council of Institutional Investors Responds to Business Roundtable Statement on Corporate Purpose. To achieve this goal, our corporations need leadership teams with the broadest and deepest perspectives and backgrounds. Then again, it could turn out to be the most uplifting. We believe the free-market system is the best means of generating good jobs, a strong and sustainable economy, innovation, a healthy environment and Executive Vice Chairman and CEO, Business Roundtable CEOs are committed to doing their part to listen, learn and use collective influence and scale to advance racial justice and equal opportunity for all Americans. In recent months, the Business Roundtable’s principles have been highly visible in the responses to the pandemic from USAA and other purpose-driven companies. Cognizant redefined its purpose and moved its practice of stakeholder capitalism into higher gear this past year. That’s up to the 181 CEOs, members of Business Roundtable (BRT), who released their new “Statement on the Purpose of a Corporation” this week. The Business Roundtable’s controversial new Statement on the Purpose of a Corporation (“Statement”) is a significant corporate governance development that requires thorough board discussion. On August 19, 2019, 181 CEOs of America’s largest corporations overturned a 22-year-old policy statement that defined a corporation’s principal purpose as maximizing shareholder return. CEO, As a signatory and in the spirit of the Business Roundtable’s ‘Purpose of a Corporation’ statement, we continue to be focused on our commitment to caring for people and communities around the world, and creating better communities through health and wellness. 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