CEOs from one- hundred and eighty- one companies have come together on a Business Roundtable (BR) to reiterate their views on how their businesses are much more than mere profits. The conventional business theory on profit maximization has come under much attack from society. So, these companies are making changes to their corporate strategy documents, thus taking a break from the Milton Friedman worldview. The latter held that social initiatives by corporates were designed primarily to somehow in the long run, help boost their profitability. This brand of stakeholder capitalism has come under fire, due to its excessive focus on one stakeholder group alone- the shareholders. A thorough study led by some academicians has clearly outlined how with time, those that have a higher purpose, tend to outperform the others, when it comes to their profits.

Source:https://hbr.org/2019/08/181-top-ceos-have-realized-companies-need-a-purpose-beyond-profit

Uploaded Date:26 August 2019