Almost 200 CEOs have signed a statement to redefine a corporation’s purpose. Is it just PR, or are they undermining their fiduciary duty? | Source: Shutterstock
The Business Roundtable or a PR Stunt?
This group of former fiduciary stewards signed a statement produced by The Business Roundtable, a 37-year-old group, that reimagines the idea of a corporation.
Despite trying to bury the odd language in other feel-good corporate cheerleading, it’s become apparent that The Business Roundtable is yielding to elitist pressure regarding “dealing ethically with suppliers,” “supporting outside communities,” and addressing “social and economic issues.”
This is not good news for the stock market.
Kick ‘Em All Out!
Ed Butowsky, Managing Partner of Chapwood Capital Investment Management, tells CCN:
“That’s a group of 181 CEOs that shareholders should fire. Their job is to create value and make money for those who own the company. All the other things that they speak of is the cherry on top of the sundae. I want the sundae – earnings growth.”
Whether or not The Business Roundtable is paying lip service to the elitists – in an effort to polish their public relations image in the stock market – remains to be seen.
CEOs can talk all they want about profits no longer being the primary motivation behind a corporation, but they are required under law and regulation to provide certain fiduciary duties,