Business Roundtable Steps Back From Milton Friedman Theory

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The Business Roundtable previously focused on maximizing shareholder value. Now the CEOs ask companies to remember their obligation to all of society.

The Business Roundtable said Monday that it is changing its statement of “the purpose of a corporation.

” No longer should decisions be based solely on whether they will yield higher profits for shareholders, the group said. Rather, corporate leaders should take into account “all stakeholders”—that is, employees, customers and society writ large.

 

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'Many American states have laws that say the directors can consider the interest of all the constituencies.' They don't operate differently. Directors are elected by stockholders.' Judge Leo Strine corpgov ESG

This is encouraging, let’s see them follow through now. As consumers we vote every day with our wallets. Let’s continue to reward those companies doing the right thing.

Oh, and I forgot, start paying taxes!

This is rethoric and hollow, not to be taken seriously. Start by paying decent wages and less working hours so people can go the restroom when they need to

Good for them, and hope they follow through. Now if only healthcare would do its own version of this:

Dimon as chair is (darkly) laughable. Majority on list of members is too. Bail US OUT! ‘Pledge’ to bring millions of good paying (union) jobs back to USA, while keeping consumer prices down (thru lowering upper management pay & shareholder take) &we’ll praise. BusinessRoundtable

They will Take the Credit for seeming to care, but reluctantly be talked into just making profit for everyone's retirement, because that is what they are good at. Nothing but a sound bite and photo op. Get Real.

I'd ask to big corporations more effort in develop personal and professional skills of their employees ( also contingent) giving them much freedom ( and responsability) to choose when, how and where they work.

It was less than a year ago that Bezos (the richest person on the planet) refused to build his factory in Queens because they wouldn't give him 5 billion dollars. But NOW he's all about the working man. Man this is a fucked up world.

They have gotten FILTHY rich by shaking down hard working Americans for TRILLIONS over tax breaks for the last 40 years. But now they have a conscience. I call BULLSHIT!!!

CEO banking WeWork IPO preaches corporate social obligations. Balls. Ballsnado.

It's a start. GhostPanther

About 40 years too late, say the abandoned factory towns all over the US.

Res ipsa loquitur...

So what do we think? Leading edge of sanitizing their obvious role in destroying the earth & the middle class. Or attempt to separate from Trump shit show before it tanks to protect unfettered Capitalism. Rebranding for cover or genuine contrition over what they have wrought?

What is missing is a clear statement that the first purpose of a business should be to provide goods and services that benefit the community. Some goods and services add no real value and are even harmful, though there may be a profitable market for them.

At last. Next, ditch ‘trickledown economics’, now that we’ve had forty years to learn that it doesn’t. It trickles UP.

There is no economic model where NOT maximizing profits to shareholders more greatly benefits society.

Benioff I’ll believe it when I see it

Uh oh. 'Compassionate Conservative' corporations?

This only came about because a vocal group of Dems were willing to call corporations out for their greedy ways. Be prepared for ashes, sack clothe, and teary speech of contrition. Then corporations will not be people, taxes will leverage well-being for all.

Customers, Employees, Shareholders, Directors, then the CEO inthatorder and all will be fine. society

Maximize profits and I will have more money for charity which I can allocate rather than some corporation.

Corporate Social Responsibility is very important, given that, it is the same community(ies) that provide the enabling ambience for the business(es) to thrive..

Yea right

k well go back to the old way and then you accomplish the new goal anyways.

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