Topic: This week’s Think Thursday will focus on the Business Roundtable Updated Statement on Company Purpose. Signed by 181 leading CEOs, the updated statement “moves away from shareholder primacy, includes commitment to all stakeholders… customers, employees, suppliers, communities and shareholders.”
We will start the Think Thursday with a bit of reflection on the varied reactions to the statement (see below for example coverage) and then move to sharing of insights and perspectives on how the statement has played out at Page member companies.
The Lead Story: “In the past few years, it has become clear to me that something fundamental and profound has changed in the way [CEOs] approach their jobs.”
Alan Murray breaking down the updated statement, highlighted by CEO interviews with Jamie Dimon (JPMC), Ginni Rometty (IBM), Alex Gorsky (J&J), Mary Barra (GM)
https://fortune.com/longform/business-roundtable-ceos-corporations-purpose/
Investor (and Treasury Secretary) Skepticism: Roundtable is “Working to diminish shareholder rights”
https://www.cnbc.com/2019/09/20/steve-mnuchin-disses-181-ceos-in-new-battle-over-future-of-profits.html
https://fortune.com/2019/08/26/business-roundtable-shareholders-rights-law/
B Corp Throwdown: “Put Up or Shut Up”
https://www.fastcompany.com/90395005/patagonia-ben-jerrys-and-30-other-companies-tell-the-business-roundtable-ceos-to-put-up-or-shut-up
https://www.forbes.com/sites/jaycoengilbert/2019/09/04/top-10-ideas-that-show-business-roundtable-ceos-how-to-create-value-for-all-stakeholders