Business Roundtable statement doesn't mean corporations will dramatically change social role: 'Only time will tell'

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While the announcement from The Business Roundtable (BRT) offers a significant redefinition of how corporations view their social role, it currently exists as an aspirational statement rather than a plan of action.

said Monday that they were redefining the social purpose of corporations to endorse more social responsibility, prompting a flurry of analyses touting the renewed social mission of large businesses.

But the purpose statement's eventual impact largely depends on how individual businesses actualize their ideals. It didn't offer explicit guidelines for implementing the values promoted. It didn't address the glaringbetween CEO pay and employee pay. It didn't note that large businesses have long lobbied Congress for corporate tax cuts, and that 60 big companies didn't pay federal income tax last year.

"Only time will tell if this is just a symbolic statement or a shift in how these businesses conduct themselves," SaraNewsweek"It's a statement that I don't think we would have seen even five years ago. I think it reflects a growing recognition by business that employees, consumers and communities are expecting more from them, particularly in addressing environmental and social issues.

Consumers are increasingly interested in corporations demonstrating social values, and, in recent years, businesses have been regularly speaking out and openly staking political opinions in recent years. Companies have challenged the policies espoused by President Donald Trump. AirBnb's co-founders called Trump's family separation

 

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