American CEOs of about 200 corporations issue a joint statement in support of stakeholder value maximization.
Becky Berkman

2019-10-23 15:39:00 Wed ET

American CEOs of about 200 corporations issue a joint statement in support of stakeholder value maximization. The Business Roundtable offers this statement of corporate purpose in 300 words. The first 250 words focus on stakeholder value maximization before the statement mentions shareholder wealth maximization. In accordance with this joint statement, the main purpose of a corporation should be investing in both the welfare and productivity of employees, delivering key value to customers, and dealing ethically with suppliers. Also, it is practically important for U.S. corporations to promote better diversity and inclusion in the workplace. These corporations should further support social communities in America. Moreover, the corporations should help protect the environment amid substantial economic policy uncertainty, climate change, and environmental degradation.

This landmark U.S. CEO statement represents an important change in business purpose away from the prior thesis of Nobel Laureate Milton Friedman in support of solo shareholder wealth maximization. This latter emphasis reveals drawbacks and impediments to long-term sustainable business development and corporate social responsibility. In a nutshell, it is essential for U.S. corporations to serve in the best interests of employees, customers, suppliers, regulators, and other major stakeholders before these corporations disgorge cash returns to shareholders.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More
Corporate America uses Trump tax cuts and offshore cash stockpiles primarily to fund share repurchases for better stock market valuation.
Jacob Miramar

2019-02-11 09:37:00 Monday ET

Corporate America uses Trump tax cuts and offshore cash stockpiles primarily to fund share repurchases for better stock market valuation.

Corporate America uses Trump tax cuts and offshore cash stockpiles primarily to fund share repurchases for better stock market valuation. Share repurchases

+See More
World Economic Forum warns that artificial intelligence may destabilize the financial system.
Jonah Whanau

2018-08-19 10:34:00 Sunday ET

World Economic Forum warns that artificial intelligence may destabilize the financial system.

The World Economic Forum warns that artificial intelligence may destabilize the financial system. Artificial intelligence poses at least a trifecta of major

+See More
President Trump signs an executive order to freeze federal employee pay in early-2019.
Rose Prince

2019-01-06 08:39:00 Sunday ET

President Trump signs an executive order to freeze federal employee pay in early-2019.

President Trump signs an executive order to freeze federal employee pay in early-2019. Federal employees face furlough or work without pay due to the govern

+See More
The Economist suggests that the world has learned few lessons of the global financial crisis from 2008 to 2009.
Becky Berkman

2018-09-07 07:33:00 Friday ET

The Economist suggests that the world has learned few lessons of the global financial crisis from 2008 to 2009.

The Economist re-evaluates the realistic scenario that the world has learned few lessons of the global financial crisis from 2008 to 2009 over the past deca

+See More
BlackRock CEO Larry Fink suggests that corporations should make a positive contribution to society apart from boosting the bottomline.
Olivia London

2018-01-09 08:33:00 Tuesday ET

BlackRock CEO Larry Fink suggests that corporations should make a positive contribution to society apart from boosting the bottomline.

BlackRock CEO Larry Fink emphasizes his key conviction that public corporations should make a positive contribution to society apart from boosting the botto

+See More
Dr Kai-Fu Lee praises China as the next epicenter of artificial intelligence and smart data analysis.
Peter Prince

2017-12-01 06:30:00 Friday ET

Dr Kai-Fu Lee praises China as the next epicenter of artificial intelligence and smart data analysis.

Dr Kai-Fu Lee praises China as the next epicenter of artificial intelligence, smart data analysis, and robotic automation. With prior IT careers at Apple, M

+See More