Apple Magazine - USA - Issue 408 (2019-08-23)

(Antfer) #1

The Business Roundtable’s principle of purpose
has historically been rooted in the words of
economist Milton Friedman, who argued the
sole purpose of a corporation was to maximize
shareholder value.
The group in the past has fought anti-trust
legislation, backed favorable tax cuts and
successfully lobbied to dilute restrictions on
executive compensation.
The language of its mission statement has
been tweaked over the years, sometimes
distancing itself from Friedman during times
of economic instability.
During a recession in the early 1990s, the
statement said corporations were meant to “serve
both their shareholders and society as a whole.”
In the recovery years following the Great
Recession, the group said it was up to
corporations to responsibly “deal with its
employees, customers, suppliers and other
constituencies in a fair and equitable manner.”

Free download pdf