Thanks to ReadWrite for referencing us in this great opens in a new windowarticle.
Nearly 200 chief executives from some of the world’s largest companies met in August as part of the Business Roundtable. Discussing the most pressing issues facing modern corporations, their manifesto signaled a departure from old-school corporate philosophy. Its primary message? Shareholder value isn’t everything.
Regardless of how far-reaching their call for change is, the reality is that consumer demands and shareholder demands are often at odds. Ignoring the former to appease the latter is a recipe for disaster.
When Dollars Don’t Make Sense
Profitability is no longer a matter of selling good products and making sound financial decisions. Today’s consumer-driven marketplace — increasingly wary of corporate motives — rewards transparency, authenticity, and benevolence. It penalizes companies that don’t live up to these values.
As society grapples with issues like income inequality and environmental degradation, companies have found themselves needing to prove they care. For some, this means rethinking partnerships, processes, supply chains, and entire business models. For others, it means doubling down on marketing and PR messaging. But for nearly all, it means implementing corporate social responsibility initiatives. They have to demonstrate their commitment to employees, consumers, and the planet — even if it could mean smaller shareholder payouts.