Stakeholder Capitalism Still Makes Business Sense

📆 2024-09-16 23:59:00
📰 HarvardBiz

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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.

, 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. The members of the Business Roundtable , 181 CEOs of the biggest companies in the U.S.,redefining the “purpose of a corporation.” After decades of obsession with short-term profits and investor returns, they committed to serving five stakeholders: customers, employees, suppliers, communities , and shareholders.was the CEO of Unilever from 2009 to 2019 and helped develop the UN Global Goals.

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