The Business Round table, a non-profit association of the CEOs of America’s largest corporations, has, since 1978, issued an annual Statement on the Purpose of a Corporation. In Previous years, the statement put forward that the first and overarching responsibility of a corporation is the creation of wealth for its shareholders. But in 2019, the Business Round table broke with tradition and put forward a statement that mentions shareholder value only fifth after customers, employees, suppliers, and communities.Statement on the Purpose of a Corporation Americans deserve an economy that allows each person to succeed through hard work and creativity and to lead a life of meaning and dignity. We believe the free-market system is the best means of generating good jobs, a strong and sustainable economy, innovation, a healthy environment and economic opportunity for all.Businesses play a vital role in the economy by creating jobs, fostering innovation and providing essential goods and services. Businesses make and sell consumer products; manufacture equipment and vehicles; support the national defense; grow and produce food; provide healthcare; generate and deliver energy; and offer financial, communications and other services that under pin economic growth.While each of our individual companies serves its own corporate purpose, we share a fundamental commitment to all of our stakeholders. We commit to:- Delivering value to our customers. We will further the tradition of American companies leading the way in meeting or exceeding customer expectations.- Investing in our employees. This starts with compensating them fairly and providing important benefits. It also includes supporting them through training and education that help develop new skills for a rapidly changing world. We foster diversity and inclusion, dignity and respect.- Dealing fairly and ethically with our suppliers. We are dedicated to serving as good partners tothe other companies, large and small, that help us meet our missions.- Supporting the communities in which we work. We respect the people in our communities andprotect the environment by embracing sustainable practices across our businesses.- Generating long-term value for shareholders, who provide the capital that allows companies to invest, grow and innovate. We are committed to transparency and effective engagement with share holders.Each of our stakeholders is essential. We commit to deliver value to all of them, for the future success of our companies, our communities and our country.This change in focus reflects a growing understanding that business exists within a broader social context and that, for any given business to be successful, it must adapt to changes in that social context. The ESG (Environmental, Social, Governance) framework has been put forward as anew way for organizations to conceptualize their activities in the marketplace.Environmental – There is growing concern, particularly among corporate leaders, that environmental change poses a risk to the world economy. Business activity uses energy and natural resources, discharges pollutants into the air and water, and depends on employees and customers whose physical well-being depends on a healthy environment. And so, a focus on an organization’s relationship to the environment is of fundamental importance.Social – Business exists within a broader social context including workers, customers, suppliers,and other stakeholders. The successful organization recognizes that its own well-being depends on that of its workers, the solidity of its supply chain, and the health of the communities both in which it operates and serves.Governance – Finally, business success depends on a solid internal governance model. Firms must have in place a formalized decision-making process that is compliant with the legal and regulatory environment and considers the long-term impact on shareholders and other relevant stakeholders. As this diagram demonstrates, adherence to an ESG framework is positively correlated withoverall financial performance. It’s difficult to determine whether attention to ESG concerns directly contributed to the superior performance. But a November 2019 McKinsey report posits five ways in which an ESG framework can create value for an organization.Top-line Growth – Attention to ESG concerns improves the relationship between the organization and its customers, regulators, and community resulting in increased sales revenue.Cost Reduction – Reduced energy use and attention to decreasing resource intensity reduce operating cost and operating risk and so improve operating margin.Reduced Regulatory Costs – Pro-active attention to regulatory concerns reduces fines and litigation expenses as well as improves relationships with local, state, and federal governments.Productivity Improvement – Improved job satisfaction and more successful hiring increase labor productivity and worker retention.Investment Optimization – Attention to ESG directs firm investment activity toward more sustainable investments reducing stranded costs later on. Attention to the broad impact of a firm’s activities on all relevant stakeholders is consistent withour value creation paradigm. Profit and social benefit are both by products of business efficiency. But ESG appears to go further by treating the pursuit of “social benefits” as equal tothe business with that of profit seeking. But this equality of treatment may simply reflect the realization that the sustainability of profit requires a healthy environment and society for business to operate within.
Why Choose Us
Top Quality and Well-Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional and Experienced Academic Writers
We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.
Free Unlimited Revisions
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.
Prompt Delivery and 100% Money-Back-Guarantee
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & Confidential
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.
Customer Support 24/7
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
Admission and Business Papers
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Editing and Proofreading
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.