The August 19th Business Roundtable news sparked an enormous amount of press–181 CEOs of the Business Roundtable signed a new statement of purpose for the corporation. These CEOs committed to lead their companies for the benefit of all stakeholders–customers, employees, suppliers, communities and shareholders, not just owners alone.
This is a positive step. It was bold and unexpected. But it was considered lip service by many. And it was alarming to some.
The Economist published an article stating,
“However well-meaning, this new form of collective capitalism will end up doing more harm than good. It risks entrenching a class of unaccountable CEOs who lack legitimacy. And it is a threat to long-term prosperity, which is the basic condition for capitalism to succeed.”