Is the Business Roundtable's Corporate Responsibility Pledge More than Just Words?

Wednesday August 21, 2019 by Carolyn


You may have read that nearly 200 CEOS who are members of the influential Business Roundtable have signed a The Business Roundtable, a “Statement on the Purpose of a Corporation,” intended to serve as a “modern standard for corporate responsibility.”

The signatories state that their sole concern is no longer just shareholders. Now, they pledge to work “for the benefit of all stakeholders — customers, employees, suppliers, communities and shareholders.” 

At this point, there is no action plan. Just words.

Question: Have the signatories reached out to B-LAB​, which certifies businesses that demonstrate their corporate responsibility through demonstrated metrics. Have they pushed states to designate qualified firms as social benefit corporations? 

Collaborating, or at minimum, consulting with B-Lab and states like California that designate qualified firms as social benefit corporations, would be an important first step in demonstrating that the Business Roundtable's statement is more than just words.