Business | The new stakeholderism

Patriotism is replacing purpose in American business

Beware the costs

A businessman presents a chart showing growth, to an audience made up of a couple of ordinary people, and Uncle Sam
Illustration: Vincent Kilbride

What are companies for? Five years ago the Business Roundtable, a club of American chief executives, overturned orthodoxy on this question. For decades company bosses had generally agreed that their mission was to make their shareholders richer. Doing good meant doing well. More precisely, it meant raising their firm’s share price. Such a narrow measure of success, it was argued, would keep managers focused and honest.

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This article appeared in the Business section of the print edition under the headline “The new stakeholderism”

From the August 17th 2024 edition

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