I
ON TOPIC
O
n August last year, the
CEOs of 181 major US
companies issued a
statement redefining
“ t he pu r p o s e of a
corporation”. Members
of The Busines s
Roundtable (who include
Amazon’s Jeff Bezos, Apple’s Tim Cook
and Fox Corporation’s Lachlan
Murdoch) asserted that shareholder
value is no longer their main focus.
Rather, investing in employees,
delivering value to customers, dealing
ethically with suppliers and supporting
outside communities are now at the
forefront of American business goals.
“While each of our individual
companies serves its own corporate
purpose, we share a fundamental
commitment to all of our stakeholders,”
the statement read. “We commit to
delivering value to all of them, for the
future success of our companies, our
communities and our country.”
One notable signatory was
BlackRock chief Larry Fink who, in
January, announced “sustainability as
BlackRock’s new standard for
investing”, building on previous pledges
to shift towards “accountable and
transparent capitalism”. In his 2018
annual letter, he wrote that “BlackRock’s
long-term success depends on our
ability to fulfil our mission of helping
people build better financial futures
and to pursue our ultimate purpose of
helping more and more people
experience financial wellbeing” —
making explicit the link between his
company’s growth and its “unwavering
commitment” to its purpose.
“A commitment to purpose is
equally important for inspiring
employees and attracting the best
talent,” he added.
Social drivers
While the proof of intent lies in these
companies’ long-term actions, the
social drivers are clear: in the wake of
the 2008 global financial crisis, and in
the shadow of devastating climate
change, there is a growing appetite for
all organisations to be ethical,
sustainable and to have a higher
purpose at their core.
Younger generations, in particular,
expect to work for responsible,
purpose-driven companies and to be
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