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threatens to leave many workers behind.
“In this era, we do stand a chance there are
going to be people who have won and not won,
haves and have-nots. We need to make sure
everyone feels they can participate. We have to
make this an inclusive era so everyone can see
they have a role and can get a good job.”
General Motors CEO Mary Barra, a mem-
ber of the BRT board, is another example of
the trend. She assumed her CEO post just be-
fore the company came under attack for faulty
ignition switches that led to more than 100
deaths. “We were very values-driven,” she says.
“It is always easy to say you have values and
put them on the walls. But living when things
are hard is more difficult.” Today, she says, “we
regularly talk to employees about our values.”
In 2017, GM condensed its social mission
into a simple, bold commitment to “zero
crashes, zero emissions, zero congestion.”
“There was a huge outpouring of support,”
Barra says. “That was a big aha moment for
me.” Levi Strauss’s Chip Bergh, who took a
strong stance on gun control, tells of a similar
epiphany.FORTUNE CONVERSATION
Barra and Bergh are in good company, it
appears. Four in 10 Fortune 500 CEOs (41%),
according to a poll we conducted in March
through SurveyMonkey, agree that solving
social problems should be “part of [their] core
business strategy.” (Seven percent, it’s worth
noting, still stick to the Friedman view that
they should “mainly focus on making profits
and not be distracted by social goals.”)
Wartzman of the Drucker Institute notes
that the current focus has a “back to the
future” quality to it. Many American corporate
leaders came out of World War II with a pro-
found sense of the need to put social goals and
workers’ needs high on their corporate agenda.
But that commitment broke down in the last
quarter of the 20th century, in part because
globalization broke the bond between many
companies and their local communities.
Just as this was happening, another radi-
cal financial notion came into vogue. It was
called the theory of shareholder primacy, and
it turned out to be more powerful that anyone
could have predicted. Who knows? Maybe the
new corporate philosophy will too.CHANGE
THE
WORLD
DELIVERING VALUE
TO OUR CUSTOMERS
We will further the tra-
dition of American com-
panies leading the way
in meeting or exceeding
customer expectations.INVESTING IN OUR
EMPLOYEES
This starts with com-
pensating them fairly
and providing impor-
tant benefits. It also
includes supporting
them through train-
ing and education that
help develop new skills
for a rapidly changing
world. We foster diver-
sity and inclusion,dignity and respect.DEALING FAIRLY
AND ETHICALLY WITH
OUR SUPPLIERS
We are dedicated to
serving as good part-
ners to the other com-
panies, large and small,
that help us meet
our missions.SUPPORTING THE
COMMUNITIES IN
WHICH WE WORK
We respect the peo-
ple in our communities
and protect the envi-
ronment by embracing
sustainable practices
across our businesses.GENERATING LONG-
TERM VALUE FOR
SHAREHOLDERS
[They] provide
the capital that
allows companies
to invest, grow, and
innovate. We are
committed to trans-
parency and effective
engagement with
shareholders.Each of our stake-
holders is essential.
W e commit to deliver
value to all of them,
for the future success
of our companies,
our communities,
and our country.Americans deserve an economy that
allows each person to succeed through
hard work and creativity and to lead a life of
meaning and dignity. We believe the free-
market system is the best means of gener-
ating good jobs, a strong and sustainable
economy, innovation, a healthy environ-
ment, and economic opportunity for all.
Businesses play a vital role in the econ-
omy by creating jobs, fostering innovation,
and providing essential goods and services.
Businesses make and sell consumer prod-
ucts; manufacture equipment and vehicles;
support the national defense; grow and
produce food; provide health care; gener-
ate and deliver energy; and offer financial,
communications, and other services that
underpin economic growth.
While each of our individual companies
serves its own corporate purpose, we share
a fundamental commitment to all of our
stakeholders. We commit to:Statement on the Purpose of a Corporation
PUBLISHED BY THE BUSINESS ROUNDTABLE, AUG. 19, 2019