Thoughts on the BRT Statement on the purpose of the corporation
Nov 18, 2019
On November 18, 2019, the National Association of Corporate Directors (NACD) published a blog that discusses the Business Roundtable's (BRT) new “Statement on the Purpose of a Corporation.”
The new statement is, in many ways, a reversion to the BRT’s 1981 “Statement on Corporate Responsibility.” The 2019 statement supersedes the 1997 “Statement on Corporate Governance” which had declared that “the paramount duty of management and of boards of directors is to the corporation’s shareholders.” None of this, of course, is news to the regular readers of the financial press. The new statement has received a tremendous amount of attention from investors, journalists, academics, and politicians. It will be carefully considered by public company management teams and boards of directors, even those not part of the BRT.
Review the full blog on the NACD's website.