The CEO conspiracy – Should CEOs seek a new purpose? Is Capitalism crumbling?
“Move Over, Shareholders: Top CEOs Say Companies Have Obligations to Society” – WSJ
“Group of top CEOs says maximizing shareholder profits no longer can be the primary goal of corporations” – Washington Post
So what should the Corporate Purpose be? – is it about shareholders profit or more? Has the pursuit of profits worked?
The heart of capitalism and stock exchanges has been for organisations to exist to provide more money now and in the future for shareholders of the organisation.
No more – said the powers at “The business roundtable” (181 of the 193 CEOs including the chief of executives of Amazon, American Airlines, and America’s biggest bank, JPMorgan Chase and Johnson and Johnson)
A corporates purpose should include a
- Commitment to employees providing fair wages and “important benefits,”
- Support communities where they operate and dealing ethically with suppliers.
- Diversity and Inclusion
These changes have been as a result of demands from employees , activists and social media.
“This new statement better reflects the way corporations can and should operate today. It affirms the essential role corporations can play in improving our society when CEOs are truly committed to meeting the needs of all stakeholders.” Johnson & Johnson chief executive Alex Gorsky
Other signatories include General Motors’ boss Mary Barra, Ford’s Jim Hackett, and Apple’s Tim Cook.
What are ways in which corporates can add value to their stakeholders and their communities?
Is being held accountable by employees and stakeholders to do the right thing enough?
‘Should those of us who are blessed pay more tax?’
My view is that capitalism works . Organisations that will survive and thrive will look after its employees and stakeholders and customers .
If customers do not support them – they will go out of business . They will drive corporates to do the right thing”_
What do you think ?
Posted on August 19, 2019