business orthodoxy is shifting

​The Business Roundtable--an organization with almost 200 executives from leading corporations like Pepsi, Apple and Walmart--signalled that the mainstream business orthodoxy is moving away from the doctrine it has followed over the past twenty years. They no longer talk about the primary duty of managers and boards of directors being to serve the financial interests of corporations' stockholders. Their new “Statement of the Purpose of a Corporation” starts 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” and goes on to describe compensating employees fairly and fostering "diversity and inclusion, dignity and respect,” "Dealing fairly and ethically with our suppliers,” and "Generating long-term value for shareholders, who provide the capital that allows companies to invest, grow and innovate. We are committed to transparency and effective engagement with shareholders.

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Statement on the Purpose of a Corporation

Shareholder Value Is No Longer Everything, Top C.E.O.s Say.