HKS Authors

See citation below for complete author information.

Berthold Beitz Research Professor in Human Rights and International Affairs

Abstract

On August 19, 2019, the U.S. Business Roundtable (BR), comprising the CEOs of more than 200 of America’s largest corporations, issued a new mission statement on “the purpose of a corporation” (BR, 2019a). The press release noted that each periodic update on principles of corporate governance since 1997 had endorsed the principle of maximizing shareholder value. In contrast, the new statement commits signatory CEOs “to lead their companies for the benefit of all stakeholders – customers, employees, suppliers, communities and shareholders” (BR, 2019b). “[Milton] Friedman must be turning in his grave,” a Fortune magazine article declared (Murray, 2019).

Citation

Ruggie, John Gerard. "Corporate Purpose in Play: The Role of ESG Investing." HKS Faculty Research Working Paper Series RWP19-034, November 2019.