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For large companies, shareholders were everything. No more.
A coalition of executives representing some of the largest US companies issued a statement Monday that redefines "the purpose of a company." The main task of a company should no longer be to promote the interests of shareholders, the coalition, known as Business Roundtable. said in a statement. Now, companies must also invest in employees, deliver value to customers, and treat suppliers with fairness and ethics.
The declaration was signed by nearly 200 executives, including Apple's leaders, American Airlines, Accenture, AT & T, Bank of America, Boeing and BlackRock.
"Although each of our companies fulfills its own purpose, we share a fundamental commitment to all our stakeholders," the statement said. "We are committed to bringing value to each of them for the future success of our businesses, our communities and our country."
The statement was short on the details on how to make this change. But he is committed to equitably paying employees and providing "significant benefits" as well as training. He also promised to "protect the environment by adopting sustainable practices in all our businesses" and to "foster diversity and inclusion, dignity and respect".
Since the 1970s, the Business Roundtable, which operates primarily as a lobbying organization, has periodically published corporate governance principles detailing how a company operates. Each version of these principles over the last 20 years has stated that "companies exist primarily to serve their shareholders," according to Monday's announcement.
"It has become clear that this wording about the company's objectives does not accurately describe how we and our colleagues, CEOs, are striving every day to create value for all our stakeholders," he says. the press release.
This article will be updated.
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