“Maintain the value of shareholder” is no longer a prime motive of some of the top multi-billion dollar corporations in America. Top executives of the companies such as amazon, bank of America General Motors, J.P. Morgan Chase, Apple, etc. are involved in the business roundtable which released the statement recently. Almost 200 Chief executive officers of these companies have signed on a statement that shifts its focus from shareholder value towards investing in employees, supporting communities, delivering value to customers, dealing appropriately with suppliers as well as creating value for shareholders in the long term. The statement was released by the business roundtable, which is a union of top corporations in the US. This trend may be followed in other regions of the world as well even though official statements from such groups from other countries may not be out yet.
All organizations, without any doubt, work towards generating value to stakeholders. But companies are focusing on other aspects which shows contribution towards society as well as aid in creating value for stakeholders’ in the long term. The business roundtable was established in the year 1972. The purpose of this union has been the same to promote public policies that help businesses. The statement recently released keeping in mind the upcoming election in 2020. Businesses have an essential role in the economy by creating jobs. Companies design, manufacture and sell equipment, vehicles; provide various services in healthcare and sell food, products etc. which helps in the economic growth of the region they operate.
A new statement by business roundtable suggests, the companies will compensate their employees fairly and train them to succeed in the industries they work. As skillset required for employment is changing rapidly, it is essential to educate them to get a better result and thus help the companies in the long run. These companies plan to help other organizations as well, which support them in meeting goals.