Revolutionary changes are afoot in the world of business. Companies are now expected to answer to more than just shareholders. They must also consider employees, customers, and the environment. This shift in corporate purpose, as outlined by the Business Roundtable, a group of chief executives from America’s largest firms, marks a radical departure from the traditional view that companies exist primarily to serve their owners.
Yet, this new vision of corporate purpose is not without its critics. Some argue that it risks undermining the market economy, while others warn of the dangers of companies becoming too focused on social issues at the expense of profitability.
Despite these concerns, there is a growing recognition that companies must adapt to survive in a rapidly changing world. This involves not only meeting the needs of shareholders but also addressing the broader societal challenges that we face today.
This change is not just about doing good. It is about doing good business. Companies that fail to adapt risk being left behind. Those that embrace this new vision of corporate purpose have the potential to thrive in the 21st century.
Go to source article: https://www.economist.com/leaders/2019/08/22/what-companies-are-for?cid1=cust/ednew/n/bl/n/2019/08/22n/owned/n/n/nwl/n/n/uk/296844/n