Advertisements
Hr Library
Trending

181 Top CEOs Have Realized Companies Need a Purpose Beyond Profit

Source | hbr.org | Claudine Gartenberg | George Serafeim

On August 19 the Business Roundtable issued an open letter titled “Statement on the Purpose of a Corporation.” One of the preeminent business lobbies in the United States, the Business Roundtable (BR) includes the CEOs of leading U.S. companies from Apple to Walmart. Sandwiched between the spare title and 181 signatures was a one-page declaration that ended as follows: “Each of our stakeholders is essential. We commit to deliver value to all of them, for the future success of our companies, our communities and our country.”

On its own, this sentence is indistinguishable from the anodyne commentary that fills the annual reports of many Business Roundtable members. For those actively following this topic, however, it represents a very public rebuke of the Milton Friedman worldview that guides business decisions behind closed doors. Friedman, the renowned University of Chicago economics professor, penned a famous 1970 New York Times essay, “The Social Responsibility Of Business Is to Increase Its Profits,” that helped launch a half century of “shareholder capitalism.” In this worldview, the business of business is business, and the sole focus of the CEO is to maximize the profits of that business.

Click here to read the full article

 

Advertisements
Source
hbr.org
Tags
Show More

Related Articles

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button
Close
Close
%d bloggers like this: