Employees, customers, suppliers, and even community neighbors all moved in front of shareholders yesterday as the primary audiences publicly held companies should utmost serve in the future.
That’s according to a statement released by the Business Roundtable, a group of CEOs representing 200 corporations around the country. This new vision recasts the prime directive of corporations from first and foremost serving shareholders (e.g. maximizing profits) to serving these new audiences.
The new mission suggests that corporations should; invest in employees, deliver value to customers, deal ethically with suppliers, and support outside communities. “Shareholders ride the caboose in this new code of corporate purpose,” said a dissenting opinion piece in yesterday’s Wall Street Journal.
Jamie Dimon, chairman and CEO of J.P. Morgan Chase and chairman of Business Roundtable, said yesterday, “Major employers are investing in their workers and communities because they know it is the only way to be successful over the long term. These modernized principles reflect the business community’s unwavering commitment to continue to push for an economy that serves all Americans.”