- 181 CEOs of top US companies have re-defined the purpose of a corporation
- Before the purpose of a corporation was defined as maximizing profits for stakeholders, now the purpose is to improve society as well
- The new definition was released on Monday by the Business Roundtable, a group of top American CEOs that dates back to 1997
- 181 CEOs signed the statement including J.P Morgan, Boeing, Apple, & Amazon
- The new statement says corporations will focus on valuing customers, hiring diverse groups and compensating them fairly, and protecting the environment
The CEOs of nearly 200 of the top companies in the U.S. have redefined the purpose of a corporation, saying a stakeholder’s interests are no longer the top priority – and the new focus is to better society.
The updated definition was released on Monday by the Business Roundtable, a group that dates back to 1997 and gathers together many of America’s most influential corporate leaders including top names like J.P Morgan, Boeing, Apple, and Amazon.
The statement redefined the purpose of a corporation with social consciousness in mind, saying corporations are now committed to valuing customers, investing in employees by hiring diverse groups and compensating them fairly, dealing ethically with suppliers, protecting the environment with sustainable practices and supporting local communities.
It’s a stark contrast from the longstanding principle that companies function first and foremost to benefit shareholders and maximize their profits.
The CEOs of 181 of the top companies in the U.S. have redefined the purpose of a corporation saying a stakeholder’s interests are no longer the top priority, now corporations have a responsibility to better society, preserve the environment and support local communities