By Insigniam

minute read

With members overseeing 15 million collective employees and $7 trillion in annual revenues across the U.S., Business Roundtable has the leverage to enact big changes. For more than 45 years, the association of leading U.S. CEOs has been championing stakeholder interests, social impact and economic equity. In August 2019, 181 CEOs signed on to a bold new mission statement declaring that businesses are responsible for serving more than shareholder interests—they are responsible for promoting the welfare and interests of all individuals who interact with their businesses, from employees to the communities in which they operate to customers.

Read on for the full statement reprinted, with permission, from Business Roundtable:

“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. Share on X We believe the free-market system is the best means of generating good jobs, a strong and sustainable economy, innovation, a healthy environment and economic opportunity for all.

Businesses play a vital role in the economy by creating jobs, fostering innovation and providing essential goods and services. Businesses make and sell consumer products; manufacture equipment and vehicles; support the national defense; grow and produce food; provide health care; generate and deliver energy; and offer financial, communications and other services that underpin economic growth.

While each of our individual companies serves its own corporate purpose, we share a fundamental commitment to all of our stakeholders. We commit to:

  • Delivering value to our customers. We will further the tradition of American companies leading the way in meeting or exceeding customer expectations
  • Investing in our employees. This starts with compensating them fairly and providing important benefits. It also includes supporting them through training and education that help develop new skills for a rapidly changing world. We foster diversity and inclusion, dignity and respect.
  • Dealing fairly and ethically with our suppliers. We are dedicated to serving as good partners to the other companies, large and small, that help us meet our missions.
  • Supporting the communities in which we work. We respect the people in our communities and protect the environment by embracing sustainable practices across our businesses.
  • Generating long-term value for shareholders, who provide the capital that allows companies to invest, grow and innovate. We are committed to transparency and effective engagement with shareholders.

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.”

This We Believe

Several leading CEOs from Business Roundtable have spoken out in support of this new statement of purpose.

“The American dream is alive, but fraying. Major employers are investing in their workers and communities because they know it is the only way to be successful over the long term.” —Jamie Dimon, chairman and CEO of JPMorgan Chase & Co. and chairman of Business Roundtable

“CEOs work to generate profits and return value to shareholders, but the best-run companies do more. They put the customer first and invest in their employees and communities.” —Tricia Griffith, president and CEO of Progressive Corp.

“This new statement better reflects the way corporations can and should operate today. It affirms the essential role corporations can play in improving our society when CEOs are truly committed to meeting the needs of all stakeholders.” —Alex Gorsky, chairman of the board and CEO of Johnson & Johnson and chair of the Business Roundtable Corporate Governance Committee

“By taking a broader, more complete view of corporate purpose, boards can focus on creating long-term value, better serving everyone—investors, employees, communities, suppliers and customers.” —Bill McNabb, former CEO of Vanguard

“It is more critical than ever that businesses in the 21st century are focused on generating long-term value for all stakeholders and addressing the challenges we face, which will result in shared prosperity and sustainability for both business and society.” —Darren Walker, president of the Ford Foundation