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Stakeholder Capitalism Still Makes Business Sense

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Five years ago, 181 CEOs issued a new statement on the purpose of a corporation, pledging to serve five stakeholders: customers, employees, suppliers, communities, and shareholders. but even then, it lagged behind what’s needed. Their commitment mattered and drove progress. But more recently, especially in the U.S.

Five years after the Business Roundtable’s call for companies to pursue more than just profit, enthusiasm has dwindled. Here’s why they should recommit.

, enthusiasm for many stakeholders’ sustainability priorities — such as climate change or DEI — has seemingly stalled. The authors reflect on what has happened since the statement, and where we’re going. Ultimately, they argue, that given the stress on our largest natural and societal systems, we needaction — deeper work to build better, more regenerative businesses — and bold, decisive leadership to ensure a sustainable and equitable future for all.On the surface, it was a big deal.

 

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