CEO's new commitment is a Revolution in Management in America

181 CEO's from America's top corporations stated that they will no longer just focus on profits for shareholders but that they will now become more socially responsible. The world of work is about to change.  It can be 100% better.

In 1970, Milton Friedman, noble prize winner, in his Friedman Doctrine, or Shareholder Theory, held that a firm's main responsibility is to its shareholders. This approach views shareholders as the economic engine of the organization and the only group to which the firm is socially responsible. As such, the goal of the firm is to maximize returns to shareholders. Friedman argued that the shareholders can then decide for themselves what social initiatives to take part in, rather than have an executive the shareholders appointed explicitly for business purposes decide for them.
 During the last 50 years, the leaders of our top corporations have done a fantastic job in delivering profits.  Some of them are even bigger economically than many countries. Apple, Inc.’s net worth is 750 billion dollars. That is more than the value of 171 countries out of 200 countries in the world. only 29 countries are richer than Apple. Just 9 of the world's richest men have more combined wealth than the poorest 4 billion people. Bill Gates has more money than the national wealth of 38 different countries. 

But just this summer our top leaders made a new commitment to become more socially responsible:

• I.    Delivering value to our customers. We will further the tradition of American companies leading the way in meeting or exceeding customer expectations.

• II.   Investing in our employees. This starts with compensating them fairly and providing important benefits. It also includes supporting them through training and education that help develop new skills for a rapidly changing world. We foster diversity and inclusion, dignity and respect.

• III.  Dealing fairly and ethically with our suppliers. We are dedicated to serving as good partners to the other companies, large and small, that help us meet our missions.

• IV.  Supporting the communities in which we work. We respect the people in our communities and protect the environment by embracing sustainable practices across our businesses.

• V.      Generating long-term value for shareholders, who provide the capital that allows companies to invest, grow and innovate. We are committed to transparency and effective engagement with shareholders.

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This is wonderful. But, how will they do this?  They will not give up their multi-million dollar salaries!  They will not give up the thrust for profits! Every dollar they spend on customer service, on employee training and skill building, on improved supplier relations, and on the environment will reduce their profits. Unless they can do it all and improve their efficiency at the same time,

We know it can be done.   Every supervisor - every manager will have to change their style and to re-examine what and how they lead.  Imagine that "customers are King/Queen again." Employees are to be developed, not monitored like school children, suppliers are to treated like partners and we all begin to recognize what we have been doing to destroy the earth.

Stay tuned - we will help make it happen.