Jamie Dimon and dozens of other leaders at some of the world’s largest companies are abandoning the long-held view that shareholders’ interests should come first.
“While each of our individual companies serves its own corporate purpose, we share a fundamental commitment to all of our stakeholders,” the group said in the statement. “Americans deserve an economy that allows each person to succeed through hard work and creativity and to lead a life of meaning and dignity.”
Fundamental PremiseThe shift in corporate priorities comes as widening income inequality and the rising costs of items including health care and higher education have led some politicians and others to question whether the fundamental premise of American capitalism should be revamped. Some executives also have complained that an outsize focus on share prices and quarterly results hamper their ability to build businesses for the long term.
The concept has been criticized for leading to a fixation on short-term results and helping fuel the rapid increase in executive compensation.
Yes, they’re now occupied with staying out of jail. Fess up. Who’s been naughty
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