Last week the Business Roundtable, an association of CEOs of America’s leading companies, published a new Statement on the Purpose of a Corporation. Since 1997, the Statement on the Purpose of a Corporation focused on the service to Shareholders. The new Statement which was updated for the modern state of business states that a Corporation benefits all stakeholders, customers, employees, suppliers, communities, and shareholders.
One hundred eighty-one (181) of the association’s CEOs signed this new Statement. The CEOs of these companies are setting the tone of companies for the next 20 years. It is encouraging to see CEOs focusing on the entire ecosystem of the business. Their focus on the big picture of stakeholders can assist in maintaining their long term business success.
The challenges faced as a leader today may be aided by this new perspective on the Purpose of a Corporation. Employee engagement and Talent acquisition have driven many discussions and continues to be a challenge. The 2018 Gallup polls tell us 66% of our employees are either not engaged or actively disengaged. (2) By focusing on the purpose of the organization on the employees, the possibility of improving engagement goes up.
The mindset change may assist in acquiring young talent. In general, the young talent appreciates a focus on community and their development, and both appear in the Statement. The young talent grew up during times of fast changes in technology. Development becomes imperative to maintain yourself as a relevant employee, so their appreciation for development seems very warranted.
Overall, the change in thinking backed by a Statement, may start a new evolution in the corporations of the future. Committing to all stakeholders of a company brings people together. It’s always better to Bring People Together than apart.
Consider these thoughts. If you are inclined, please send your thoughts. An interactive audience enables learning for us all.