Since 1978 the Business Roundtable has periodically issued Principles of Corporate Governance in the US. Many companies worldwide follow these as guideline. From 1997 on each & every version has stated that corporations exist principally to serve shareholders. But there is a change!
The 2019 release – signed recently by 181 CEO of mayor US companies like Amazon, MasterCard PWC and Walmart – broke with this old fashioned principle. From today the purpose of a corporation should have a fundamental commitment to all stakeholders:
- Deliver value to customers by leading the way in meeting or exceeding their expectations – Invest in employees by compensating them fairly, providing important benefits and support training & education
- Deal fairly & ethically with suppliers and serve as good partners to companies that help meet their missions
- Support the communities in which they work by respecting the people and protect the environment by embracing sustainable initiatives
- Generate long-term value for shareholders that allow companies to invest, grow and innovate.
As any stakeholder is essential for success, they ‘just’ commit to deliver value to them all 🎯