More Reactions to the Business Roundtable’s Stakeholder Statement

More reactions: From the always-thoughtful and insightful Doug Chia: Like the Commonsense Governance Principles (1.0 and 2.0), it’s not about what is being said, which we all know is nothing new (e.g., the J&J Credo was written in the 1943; my most recent boss at The Conference Board, Steve Odland, often says “‘CEO’ stands for…

Reactions to the BRT’s New “Stakeholder” Statement

This week Business Roundtable CEOs signed a statement committing vaguely to no longer making shareholder value their primary goal, and we expressed some skepticism and concerns. Some other reactions: Jay Coen Gilbert, Andrew Kassoy, and Bart Houlahan, founders of the B Corporation movement wrote in Fast Company: Ensuring that our capitalist system is designed to…

CEOs Adopt “Stakeholder” Goals: Business Roundtable

A new statement from the Business Roundtable commits to stakeholder interests instead of making the primary purpose of the company shareholder value. We have some concerns.  And a strong sense of deja vu. The last time the BRT was excited about stakeholders it was during the era of hostile takeovers, and a feint to the…

Shareholders Are Not the Problem

Susan Holmberg has a sincere, thoughtful, but occasionally misguided new paper, Economic Inclusion, Finance, and Wealth. The ideology of “shareholder primacy”—the belief that businesses function solely to profit and “maximize value” for shareholders—has had a profound and toxic effect on our economy. Corporate executives used to, in large part, manage companies for the long term,…