Blog / The Business Perspective
A New Corporate Purpose
August 29, 2019
by Maria S. Salinas
More than 30 members of the Los Angeles Area Chamber of Commerce signed on to a new Statement on the Purpose of a Corporation issued by the Business Roundtable, a Washington, D.C. based nonprofit organization comprised of Chief Executive Officers from major U.S. companies. The statement recognizes that investments in customers, employees, supplies and communities should be on par with shareholder value.
This shift from a "purpose," previously centered on shareholder value only, to one that is broader is intended to better serve communities while providing long-term shareholder value. The statement is signed by 181 CEOs and begins with "Americans deserve an economy that allows each person to succeed through hard work and creativity and to lead a life of meaning and dignity."
This statement identifies five principles:
- Delivering value to customers
- Investing in employees and fostering diversity and inclusion
- Dealing fairly and ethically with suppliers
- Supporting communities including protecting the environment
- Generating long-term value for shareholders
Many of our members that have signed on to this statement have long worked with the Chamber in the manner described. From investments to solving the homelessness crisis in our region, to shadowing educational leaders during our Principal for a Day programming, or extending a hand to those who have served our country at "Hire a Vet" fairs, we are proud to facilitate business leadership in a range of community endeavors. We applaud their continued commitment in recognizing that corporations can do more to bring about positive societal impacts while also driving shareholder value.
Jamie Dimon, Chairman and CEO of JPMorgan Chase & Co., a Chamber member company, and Chairman of Business Roundtable stated, "These modernized principles reflect the business community’s unwavering commitment to continue to push for an economy that serves all Americans."
Businesses are the backbone of our economy, creating jobs and fostering innovation. We encourage all businesses, local and national, to reflect on these principles, embrace them and if you choose to implement them, we are here to help.
Comments
Private comment posted @ 8:40:00 pm
To dignify those equalities is one step closer to equanimity. Thank you for developing authentic inspirational leadership.
bill
bill
Posted by: William Derbyshire @ 8:19:28 pm
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