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After stating for 40 years that the primary obligation of business is to shareholders, in 2019 the Business Roundtable - comprised of 181 of the
After stating for 40 years that the primary obligation of business is to shareholders, in 2019 the Business Roundtable - comprised of 181 of the United States' biggest companies - released a new statement that corporations have 'a fundamental commitment to all of our stakeholders'.Identify the main stakeholders the Business Roundtable identifies, and explain why, according to Freeman, businesses would have an ethical obligation to these stakeholder groups?
Here is a fundamental commitment from Business Roundtable's statement:
- Delivering value to our customers. We will further the tradition of American companies leading the way in meeting or exceeding customer expectations.
- Investing in our employees. This starts with compensating them fairly and providing important benefits. It also includes supporting them through training and education that help develop new skills for a rapidly changing world. We foster diversity and inclusion, dignity and respect.
- Dealing fairly and ethically with our suppliers. We are dedicated to serving as good partners to the other companies, large and small, that help us meet our missions.
- Supporting the communities in which we work. We respect the people in our communities and protect the environment by embracing sustainable practices across our businesses.
- 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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