In August 2019, almost all the Business Roundtable CEO members (181) signed on to an updated BRT definition of “the purpose of a corporation.”

The original definition and periodic updates followed the Professor Milton Friedman doctrine from the 1970s on -- “…the paramount duty of management and of boards of directors is to the corporation’s stockholders.”  The BRT’s updated statement is very different from that approach and embraces the idea that stakeholders really do matter (including shareholders).  The BRT’s updated statement of purpose includes commitments to customers, employees, suppliers, communities, and shareholders.  Each of these is “essential,” say the CEO signatories, who commit “to deliver value to all, for the future success of the companies, our communities and our country.”

The G&A Institute research team examined the ESG / sustainability reporting practices of the BRT signatory corporations, and released a resource paper with the results.

• 93% (181 of 193) of BRT member companies’ CEOs are signatories to the updated statement of corporate purpose (at time of research in November 2019)
• 93% (150 of 160) of CEOs of public company members signed on
• 94% (31 of 33) of CEOs of privately-owned company members signed on .
• 85% (154 of 181) of CEO signatories’ companies publish sustainability /ESG reports
• 15% (27 of 181) of companies are signatories -- but not yet publishing reports

Additional perspectives from G&A; detailed analysis of reporting practices (such as trends in usage of reporting standards like GRI, SASB, TCFD, and the SDGs); Harvard Business Review “Top 100 Global CEOs” crossover with BRT members, and links to external related resources and information are also included in G&A’s Resource Paper. 

Fill out the form on the right to download a copy.