Question
1. Last August, a group of the nation's most powerful chief executives abandoned the idea that companies must maximize profits for shareholders. Instead, they agreed
1. Last August, a group of the nation's most powerful chief executives abandoned the idea that companies must maximize profits for shareholders. Instead, they agreed to deliver value to "stakeholders" who do not necessarily own any shares. They believe companies should commit to balancing the needs of shareholders with customers, employees, suppliers, and local communities.
What are your thoughts about this new statement? A federal financial regulator sees the Roundtable heading to a "very dangerous place," which will invite outside groups to demand metrics having nothing to do with serving shareholders, customers, or workers. Do you think the statement would change the ways corporations conduct business? Please discuss.
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