Why Are You In Business?
The Business Roundtable (BRT) is a nonprofit lobbyist association based in Washington, D.C. whose members are chief executive officers of major United States companies. For over 20 years they have said that corporations exist principally to serve shareholders.
The BRT updated their statement on purpose of a corporation in 2019. They shifted from „highest rates of return“ to: serving customers, building a workforce of diversity, inclusion and respect and protecting the environment with sustainable practices.
While each individual company serves their own corporate purpose, they share a fundamental commitment to ALL of their stakeholders. They commit to:
- Delivering value to customers. Leading the way in meeting or exceeding customer expectations.
- Investing in 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. Fostering diversity and inclusion, dignity and respect.
- Dealing fairly and ethically with suppliers. Dedication to serving as good partners to other companies, large and small, that help meet their missions.
- Supporting the communities in which they work. Respecting the people in their communities and protecting the environment by embracing sustainable practices across their businesses.
- Generating long-term value for shareholders, who provide the capital that allows companies to invest, grow and innovate. Commitment to transparency and effective engagement with shareholders.
Each stakeholder is essential. Companies commit to delivering value to ALL of them, for the future success of companies and communities.
Read more about it here: Business Roundtable