HOW CEOS PUT PRINCIPLES INTO PRACTICE
On August 19, 2019, 181 CEOs of America’s largest corporations overturned a 22-year-old policy statement that defined a corporation’s principal purpose as maximizing shareholder return.
In its place, the CEOs of Business Roundtable adopted a new Statement on the Purpose of a Corporation declaring that companies should serve not only their shareholders, but also deliver value to their customers, invest in employees, deal fairly with suppliers and support the communities in which they operate.
The updated Statement better reflected the way CEOs endeavor every day to create value for all of their stakeholders and challenged companies to do more. Through a year of unprecedented crisis, the nation’s companies have held to their commitment and risen to the challenge. Business Roundtable companies have invested in workers, taken a leading role in fighting the pandemic, and supported the communities where they serve. Companies have powerfully demonstrated their commitment to work for the benefit of all stakeholders through the current crises.
In the months that followed the release of our Statement, Business Roundtable CEOs took action to invest in worker training and education, raise wages, support new employee health and wellness benefits, promote more sustainable businesses and give back to the communities they serve.
Business Roundtable CEOs called for an increase in the federal minimum wage, access to paid family medical leave for more Americans and funding to support historically Black colleges and universities and other minority-serving institutions.
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COVID-19-related response efforts
Faced with the pandemic, companies have prioritized the health and safety of their employees and customers. They have raised wages and delivered bonuses to frontline workers. Many are giving generously to support their communities. Auto insurers are issuing premium rebates and credits back to their customers. Energy companies have vowed to keep power on for customers who are unable to pay. Companies have retooled operations to fill critical medical supply shortages, while others are at the forefront of efforts to develop a COVID-19 vaccine. Business Roundtable CEOs have also been using their influence to press policymakers for assistance to individuals and small businesses hard-hit by the crisis.
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