The Statement Of Purpose And What You Need To Do

I am asking all of you who read this post to do whatever you can to encourage companies you are involved with in any way to get their board to publish a “Statement of Purpose.”

On August 19, 2019 the Business Roundtable released its “Statement on the Purpose of the Corporation” which was signed by 181 CEOs. The essence of the BRT’s simple one-page statement is “While each of our individual companies serves its own corporate purpose, we share a fundamental commitment to all of our stakeholders.” This statement is an update to the BRT’s much longer 1997 “Statement on Corporate Governance” White Paper which asserted shareholder primacy in the first sentence of the Introduction: “The Business Roundtable wishes to emphasize that the principal objective of a business enterprise is to generate economic returns to its owners.”

By: Bob Eccles


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