Power Sector CEOs Join Top Execs in Redefining Corporate Purpose
The list of 181 CEOs who earlier this week moved to publicly degrade shareholder value in a bid to redefine the “purpose of a corporation” includes several chief executives from power companies.
The Aug. 19 statement issued by the Business Roundtable, an association of CEOs “to promote a thriving U.S. economy and expanded opportunity for all Americans through sound public policy,” moves away from the primacy of shareholder interests. That notion—that corporations exist principally to serve shareholders—has belied principles endorsed by the group since 1997.
Instead, the group sought to outline a “modern standard for corporate responsibility.” While it still emphasizes a commitment to generate “long-term value” to shareholders, who provide capital that allow companies to “invest, grow, and innovate,” the group’s new statement prioritizes delivering value to customers, investing in employees, dealing fairly and ethically with suppliers, and community support.
The shift comes as large corporations face increasing public pressure over their societal impacts, including over working conditions, wages, and product safety.…