What is the purpose of business today? In the past, the only desirable “reason for being” for business was to generate shareholder profits.
The problem is that profits for shareholders alone doesn’t help struggling families. nor does it inspire younger generations who want meaningful careers while benefitting their communities.
Last fall, the Business Roundtable -- an organization that includes nearly 200 American CEOs from some of the largest companies in the world -- made a startling about-face regarding the purpose of business.
In their new “statement of purpose of the corporation,” the Business Roundtable boldly states that business must benefit all stakeholders, including employees, suppliers, customers and communities.
For example, these CEOs committed to “compensating (employees) fairly and providing important benefits. It also includes supporting them through training and education that help develop new skills for a rapidly changing world. We foster diversity and inclusion, dignity and respect.”
There are similar intentions for suppliers, customers, communities and shareholders. The thing is stating these intentions is much easier than demonstrating these intentions.
In today’s 3.5-minute video episode just for SmartBrief readers and viewers, I specify how senior leaders can begin to create a culture of respect and of community service that inspires employees, customers, suppliers, and communities.
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