Hit or Miss #8 - The purpose of a corporation – beyond profits

Milton Friedman famously wrote that the social responsibility of a business is to increase profits for its shareholders. Last week, 200 CEOs including the leaders of Amazon, Walmart and Pepsi issued a letter of intent clearly rejecting this statement.
The letter issued by the Business Roundtable, a leading business lobby in the United States, stated that the purpose of a corporation is to bring benefits to all stakeholders - customers, employees, the communities they operate in, the environment, as well as shareholders.
What is most striking about this landmark statement is that leaders signed the letter personally, setting themselves apart from their peers. Of course, this allows the public to hold them accountable to their promises, but it also demonstrates authenticity and thought-leadership. Therefore, we believe that CEOs who personally commit to benefiting people, planet and profit are a hit.

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