8/24/2019

Has the purpose of corporations changed?

"The stakeholder theory received a huge boost today as the Business Roundtable, one of the most powerful pro-business lobbying groups in the United States, issued a statement that moves away from shareholder primacy and redefines the purpose of a corporation to promote “an economy that serves all Americans.”

As the statement notes, Business Roundtable has periodically issued Principles of Corporate Governance since 1978 and each version since 1997 has endorsed principles of shareholder primacy–that corporations exist principally to serve shareholders. This new statement supersedes previous statements and outlines a modern standard for corporate responsibility."