The Business Roundtable Renews Our National Future

The tech industry knows the key to survival is adaptation. Companies that defer to the status quo fail; companies that disrupt the status quo generally thrive. But now, virtually the entire U.S. business community sees the need for adaptation – and it’s responding in a groundbreaking way. 

For decades, Business Roundtable (BRT) has gathered the CEOs from the nation’s largest companies in America. This past Monday, it changed the assumption that business should only focus on profits. Instead of prioritizing the needs of shareholders, the Roundtable urges companies to consider the interests of all – from employees and stockholders affiliated with the company, to society at large and even the earth itself. As long-time corporate ethics advocate and Fortune’s Alan Murray puts it: “[S]omething fundamental and profound has changed in the way [CEOs] approach their jobs.” 

I believe that “something” is a recognition that our country is crying out for real leadership. Our nation is at a unique time, with a fracture in views not seen since the Civil War. Politicians are no longer unifying figures – instead, they pander to the most extreme sides of their base and heighten our divisions.

Now is the time for business leaders to step up. Earlier this year, during the longest government shutdown in history, both Republicans and Democrats appeared frozen and unable to compromise. I’m proud that some 40 business trade associations and labor unions agreed to add their names to our ad campaign urging government leaders to resolve the situation and end the shutdown. Fortunately, one business day before our kickoff ad was set to debut, a compromise budget was reached.

Traditionally, corporate leaders have stayed silent, seeking to maximize profit and deliver value for shareholders above all else. Now, data indicates silence isn’t working in their favor. Morning Consult recently conducted a survey of over 2,200 Americans, asking their opinion on key sectors of American society. Fewer than two-thirds viewed Fortune 500 companies and large corporations “favorably” or “somewhat favorably” – among the lowest of all groups.

But there is hope. Business leaders are eager to act aggressively to address major national problems. It’s not only the reputation of big business which is suffering, but the nation and the world are also hurting. As political leaders fight from their party corners, business leaders can help solve societal problems. It’s an ethical choice that’s pragmatic as well. The stronger America is, the stronger her companies will be. And companies are starting to recognize it makes good business sense to act ethically. Brands are about public perception – and leaders of businesses define their brands by the goodwill they generate. Increasingly, younger generations are making purchase decisions on the basis of brands and whether they do good.

Our political leaders have left a void that must be filled. By harnessing the vast amounts of resources and talent available to them, corporate leaders can leverage their national and international influence to better reflect the beautiful promise of America – a world marked by liberty, prosperity, opportunity and creativity. Whether it is decent wages, skills training or environmental protection, companies and industries can make a difference.

I am intensely proud that our association has committed to meet or exceed the environmental goals of the Paris Accord. I am thrilled our corporate members committed to hire or reskill millions of Americans in the next few years. I am happy to lead an association investing in veterans, women and minority headed start-ups and opportunities for children to experience the American Dream.

I love that so many of our members are larger companies that signed the BRT’s new “Statement on the Purpose of a Corporation,” and I look forward to seeing this renewed sense of purpose across industries. Our nation needs leaders at all levels – and in all industries – with a vision for what the world can be and the drive to make it happen. We can’t simply assume our political leaders will solve the big problems.

I encourage you to read Business Roundtable’s Statement on the Purpose of a Corporation, and leave your thoughts below.