To love, honor... and generate profits at all costs forever. Since economist Milton Friedman first articulated it in the 70s, the purpose of corporations has been to maximize shareholder value — "profits." But now the Business Roundtable (a club of 181 big CEOs) wants to change that. Led by JPMorgan's Jamie Dimon, the group met up, probably ate well, and then recommitted itself.
- Old vows (Since the 70s/80s): Ruthless capitalism
- New vows (yesterday): Sustainable capitalism
Customers, employees, diversity, ethics, the environment... The Business Roundtable wants them all in a corporation's purpose — Apple, Amazon, and Bank of America's CEOs agree. We're already seeing major brands act on it: Think Nike's sponsorship of Colin Kaepernick through his social justice campaign, or Patagonia donating tax cut savings to environmental causes.
Capitalism is evolving for wokeness... It's created immense wealth, value, and innovation — it probably drove the motivation for whatever device you're reading this on. But a shocking less than 50% of Millennials believe capitalism is good. As young consumers reject Big Beer, Big Food, and Big Fashion, corporations are realizing the value in acting with principles. Now the Business Roundtable is building a framework around that.