Good morning.
It’s been three years since the Business Roundtable issued its redefined “Purpose of a Corporation,” putting all stakeholders—workers, customers, communities, the environment—on a par with shareholders.
Has business gotten better in the interim?
There’s at least some evidence that perhaps it has, at least if the American public is the judge. Asked in a poll by Just Capital which stakeholder large U.S. companies prioritize the most, 50% of Americans say “their shareholders.” But that’s down from 69% six years ago. And 31% say companies prioritize “their employees” most, up from just 9% six years ago. Still, the poll showed only 49% of respondents said large U.S. companies have a positive impact on society overall. And only 37% said they have a positive impact on the environment.
Just Capital also looked at how the companies that signed the Purpose of a Corporation statement are doing, relative to the other companies it ranks annually in the Russell 1000. The answer: pretty good. BRT signatories:
--Pay an estimated 3.2% more of their workers a living wage;
--Provide 3.5 hours more career development training;
--Have 26% fewer workplace safety incidents per person-hour worked;
--Are five times more likely to have made climate commitments in line with the goals of the Science Based Targets initiative;
--Are 3.2% more likely to have disclosed a pay equity analysis by gender and/or race.
Not perfect, by any means, but better. You can read more on the Just Capital poll, out fresh this morning, here, and more on the analysis of Business Roundtable signatories here. Other news below.
Alan Murray
@alansmurray
alan.murray@fortune.com
