Putting Prog-Globalism Before Profits

The organization representing the nation's most powerful chief executives is rewriting how it views the purpose of a corporation, updating its decades-old endorsement of the theory that shareholders' interests should come above all else.

The new statement, released Monday by the Business Roundtable, suggests balancing the needs of a company's various constituencies and comes at a time of widening income inequality, rising expectations from the public for corporate behavior and proposals from Democratic lawmakers that aim to revamp or even restructure American capitalism.

"Americans deserve an economy that allows each person to succeed through hard work and creativity and to lead a life of meaning and dignity," reads the statement from the organization, which is chaired by JPMorgan Chase CEO Jamie Dimon.

The group says its members "share a fundamental commitment to all of our stakeholders," and commit to doing well by their customers, employees, suppliers and local communities. "Each of our stakeholders is essential," the group adds. "We commit to deliver value to all of them, for the future success of our companies, our communities and our country."

The new statement includes 181 signatures of the 192 current members of the Business Roundtable, which represents many of the biggest companies in the United States. While the statement represents at the very least a symbolic change in the group's thinking, it was not clear how companies would change their practices in light of the new commitments, nor how any changes in behavior would be assessed or monitored.

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— Global Times (@globaltimesnews) August 16, 2019