What Companies Are For
Business fads come and go, but recently the heads of more than 180 US-based companies signed on to a statement that essentially challenges one of the most unshakeable convictions of American corporate pilosophy: that the corporation exists fundamentally to serve the shareholder. In a Statement on the Purpose of a Corporation issued by the Business Roundtable (which includes such icons as Amazon, American Airlines and JPMorgan Chase) businesses are called on to broaden their sense of purpose to better serve employees, communities and the environment — in addition to meeting the needs of shareholders.
Agree or not, the idea is worth sharing as it’s just one part of a growing conversation we can expect in the coming months as companies strive to balance the needs of an ever wider and connected set of stakeholders.
Courtesy of David Gallagher, Board of Advisors member and President, Growth and Development, International for Omnicon Public Relations Group.