The BRT issues a NEW ‘Statement on the Purpose of a Corporation’
A wonderful shift has begun
Recently the Business Round Table or BRT, an association of the chief executive officers of nearly 200 of America’s most prominent companies, completely re-framed their view of what a corporation’s purpose is.
Adora create hopes to partner with you – every influencer, non-profit, and brand- to fulfill the promise of these new standards. Working together we can do so much to make this new vision a reality.
UPDATE: Over the last few weeks many have doubted the sincerity of the business leaders who signed this statement and even the statement itself. The truth is, until these companies change their policies and their leaders alter their actions to reflect the statement’s views, we won’t know WHY the shift in perspective happened.
Was it just for appearances’ sake?
Do these leaders harbor a deep desire to make the world a better place?
And does it even matter?
At the end of the day, if we see a tangible change in these leaders’ actions and a shift in how business is done and for what purpose, that is a GOOD thing. It’s exactly the kind of change that leads to the stories we want to tell, of good inspiring yet more good until everyone, every single person, is galvanized to DO MORE GOOD.
What does this ‘New’ Statement on the purpose of a Corporation mean?
(Published by the Business Roundtable, Aug. 19, 2019)
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. 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. [They] 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.
Read the agreement with the signatures of those who have committed to this new statement.
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