Question

In August 2019, the Business Roundtable changed the main purpose of a corporation from “to create value for investors” to “to benefit all stakeholder – customers, employees, suppliers, communities and shareholders.” What, if any, benefit do you see in this and how can you foresee this impacting your life?

Answer 1

This is the first step of the organisation towards Corporate Governance, the motto of the corporation was changed from "creating value for investors" to "to benefit all stakeholder - customers, employees, suppliers, communities and shareholders". The company is going for a holistic approach. Earlier all its decisions were based on only creating wealth for the shareholders i.e. money making or generating maximum profits without bothering about the others, whether ethical practices were to be followed or unethical doesn't matter when profits are getting generated. Earlier company never thought from the perspective of its employees well being, their adequate compensation, living conditions, supplier's terms, honor code, timely payment, goodwill maintaining in the market, customer centric approach to produce the best quality product, it causes no harm to society, nature, contribution to the environment, being socially responsible. With this new motto, company's management will go wonders and it will not only increase stakeholder's wealth but create a positive impact in everyone's life. With value the company will grow much faster than ever and it will be a win win for everyone either being an employee or a common citizen.