Some are calling it a public relations stunt. Others—mainly, institutional investors—are peeved by the very notion. And still others are singing its praises. Whatever side you fall on, one thing is certain: The Business Roundtable’s newly announced modernization of its principles on the “purpose of a corporation” is a symbolic step in advancing the conversation forward.
The buzz concerns a statement issued Aug. 19 by the Business Roundtable that essentially redefines the purpose of a company existing solely to serve their shareholders to, instead, having a responsibility to all stakeholders—employees, suppliers, customers, the communities it serves, and the environment at large. “Each of our stakeholders is essential,” the Business Roundtable said. “We commit to deliver value to all of them, for the future success of our companies, our communities, and our country.”
