Impact of Business Roundtable Announcement

What’s the Problem: The Council of Institutional Investors worries that companies and boards will stop listening to shareholder issues. 

The Roundtable’s Real Message: US companies are actively seeking recognition and asserting that they are ethically run, high integrity businesses who care about being good corporate citizens in their community. Companies are distancing themselves from pollution and doing damage.

The Trend: The redefinition of a business’s purpose to include responsibility to stakeholders has previously been established in the UK and the EU. The definition is now moving to the US. 

Forbes | Deciphering Corporate Speak: The Purpose of a Corporation