Post by account_disabled on Mar 10, 2024 3:52:16 GMT
US CEOs say companies should put Social Responsibility above profits.
Corporate America signed a document called: “statement of corporate purpose” including 180 American companies, including Amazon, American Airlines, JPMorgan Chase & Co.
The group's statement goes against the Chile Mobile Number List historical view that corporations exist to provide profits to their shareholders.
This philosophy has guided important decisions: from how much the CEO is paid if he invests more in his employees or fires them, from what he makes the products, at what prices he sells them, etc.
According to the Reuters news agency, the statement comes amid calls from Democratic candidates for business leaders to have greater corporate responsibility.
JPMorgan CEO Jamie Dimon said there is a growing wealth gap in the United States and that prioritizing everyone, rather than just a few, will lead to a healthier economy.
Major employers are investing in their workers and communities because they know it's the only way to be successful in the long term.
Jamie Dimon, CEO of JPMorgan
The document describes commitments such as:
Investing in employees by providing fair wages.
Support for communities.
Environmental Protection.
According to Barbara Dyer, a professor at the MIT Sloan School of Management, CEOs may have gained perspective now because the job market presents an opportunity to rethink “how we view and invest in people.”
The Business Roundtable is the most influential group of corporate leaders in the United States and has agreed for more than a decade that "the primary duty of management and boards of directors is to the shareholders of the corporation."
The interests of other parties, such as employees, would only be “relevant as a derivative of the duty to shareholders”.
The group of leaders says in the statement that the purpose of a firm contradicts the theory of Milton Friedman, who said that seeking profits for shareholders is the only thing that would allow a company to prosper, keep people employed and feed the economy. economy.
Jamie Dimon, CEO and chairman of JPMorgan Chase, suggested that the Business Roundtable is essentially playing catch-up with the way many leaders already run their businesses.
In a press release he stated that “major employers are investing in their workers and communities because they know it is the only way to be successful in the long term. “These modernized principles reflect the business community’s unwavering commitment to continuing to drive an economy that works for all Americans.”
Statement on the purpose of a company
The document published by the Business Roundtable talks about the fundamental commitment to stakeholders and about each of its commitments:
Deliver value to customers. Promote the tradition of American companies that lead change to meet or exceed customer expectations.
Invest in employees. Compensate them fairly and provide important benefits. Train and educate them. Promote inclusion, dignity and respect.
Treat suppliers fairly.
Support communities. Respect the people of the communities; Protect the environment.
Generate value for shareholders who provide the capital that allows companies to invest, grow and innovate.
Not everyone believes it
For critics of big business, this new statement, which was signed by 181 CEOs, is welcomed, but with a lot of skepticism. To them, recent talk from corporate leaders about social purpose, protecting the environment and thinking beyond next quarter's results is just empty rhetoric.
According to skeptics of these statements, the Business Roundtable is getting this idea from the philosophy of "conscious capitalism," which proposes that a company have a broader responsibility to society, which it can better serve by taking into account all stakeholders in your business decisions. Unfortunately, it's a concept that a growing number of CEOs have been preaching over the past decade, even though many of their organizations don't live it.
Corporate America signed a document called: “statement of corporate purpose” including 180 American companies, including Amazon, American Airlines, JPMorgan Chase & Co.
The group's statement goes against the Chile Mobile Number List historical view that corporations exist to provide profits to their shareholders.
This philosophy has guided important decisions: from how much the CEO is paid if he invests more in his employees or fires them, from what he makes the products, at what prices he sells them, etc.
According to the Reuters news agency, the statement comes amid calls from Democratic candidates for business leaders to have greater corporate responsibility.
JPMorgan CEO Jamie Dimon said there is a growing wealth gap in the United States and that prioritizing everyone, rather than just a few, will lead to a healthier economy.
Major employers are investing in their workers and communities because they know it's the only way to be successful in the long term.
Jamie Dimon, CEO of JPMorgan
The document describes commitments such as:
Investing in employees by providing fair wages.
Support for communities.
Environmental Protection.
According to Barbara Dyer, a professor at the MIT Sloan School of Management, CEOs may have gained perspective now because the job market presents an opportunity to rethink “how we view and invest in people.”
The Business Roundtable is the most influential group of corporate leaders in the United States and has agreed for more than a decade that "the primary duty of management and boards of directors is to the shareholders of the corporation."
The interests of other parties, such as employees, would only be “relevant as a derivative of the duty to shareholders”.
The group of leaders says in the statement that the purpose of a firm contradicts the theory of Milton Friedman, who said that seeking profits for shareholders is the only thing that would allow a company to prosper, keep people employed and feed the economy. economy.
Jamie Dimon, CEO and chairman of JPMorgan Chase, suggested that the Business Roundtable is essentially playing catch-up with the way many leaders already run their businesses.
In a press release he stated that “major employers are investing in their workers and communities because they know it is the only way to be successful in the long term. “These modernized principles reflect the business community’s unwavering commitment to continuing to drive an economy that works for all Americans.”
Statement on the purpose of a company
The document published by the Business Roundtable talks about the fundamental commitment to stakeholders and about each of its commitments:
Deliver value to customers. Promote the tradition of American companies that lead change to meet or exceed customer expectations.
Invest in employees. Compensate them fairly and provide important benefits. Train and educate them. Promote inclusion, dignity and respect.
Treat suppliers fairly.
Support communities. Respect the people of the communities; Protect the environment.
Generate value for shareholders who provide the capital that allows companies to invest, grow and innovate.
Not everyone believes it
For critics of big business, this new statement, which was signed by 181 CEOs, is welcomed, but with a lot of skepticism. To them, recent talk from corporate leaders about social purpose, protecting the environment and thinking beyond next quarter's results is just empty rhetoric.
According to skeptics of these statements, the Business Roundtable is getting this idea from the philosophy of "conscious capitalism," which proposes that a company have a broader responsibility to society, which it can better serve by taking into account all stakeholders in your business decisions. Unfortunately, it's a concept that a growing number of CEOs have been preaching over the past decade, even though many of their organizations don't live it.