About a month ago, a statement signed by 181 CEOs of the Business Roundtable rewrote the purpose of a corporation. That purpose includes a broader mission to foster an economy that benefits all Americans.
— IPaintMyMind (@IPaintMyMind) May 15, 2020
The association’s previously held maxim that a corporation’s foremost existence was to serve shareholders was scrapped in an effort to put a greater focus on improving society.
Under the new statement, a corporation’s shareholders are, well, everyone. The change in perspective toward corporate social responsibility coincides with American business leader’s acknowledgment that corporations have a shared best interest with their communities–their responsibility is to society at large.
The new purpose emphasizes investment in employees and communities, where the commitment to support workers, respect communities and implement sustainable practices is what generates long-term value.
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