Business Roundtable
Abbreviation | BRT |
---|---|
Type | Trade association Business lobbying Public relations Nonprofit association |
Website | www |
The Business Roundtable (BRT) is a
In 2019, BRT redefined its definition of the purpose of a corporation as participating in
History
On October 13, 1972,[8] the March Group, co-founded by Alcoa chairman John D. Harper[9][10] and General Electric CEO Fred Borch, the Construction Users Anti-Inflation Roundtable, founded by retired U.S. Steel CEO Roger Blough, and the Labor Law Study Group (LLSG) merged to form the Business Roundtable.[11]
The March Group consisted of
In 2010, The Washington Post characterized the group as
On August 19, 2019, BRT redefined its decades-old definition of the purpose of a corporation, replacing its bedrock principle that shareholder interests must be placed above all else, as defined in 1970 by conservative economist and Nobel economics laureate Milton Friedman[15] and promoted during the 1980s in the teachings and writings of economist Alfred Rappaport; the shareholder value theory was widely adopted in 20th century North American boardrooms.[16] The BRT statement, signed by nearly 200 chief executive officers from major U.S. corporations in 2019, makes a "fundamental commitment to all of our stakeholders," including customers, employees, suppliers and local communities.[17]
Activities
The Business Roundtable played a key role in defeating an
In fiscal policy, the Roundtable was responsible for broadening the 1985 tax cuts signed into law by
The Roundtable also successfully opposed changes in
It has issued press releases, submitted editorials, given congressional testimony, and distributed position advertisements. After the No Child Left Behind Act of 2001 was signed into law in January 2002, the Roundtable issued a press release stating that it had "strongly supported passage of the legislation" and was "actively working with states on implementation."[18]
The Business Roundtable also acts as a major lobby that aims to extend or maintain administrators' rights/power in large companies. For example, the U.S. Securities and Exchange Commission adopted the so-called "shareholders’ access to proxy" rule, which aimed to empower shareholders in the proposition and nomination of administrators of big corporations. The Business Roundtable was strongly against that rule, as its president John Castellani reported to The Washington Post about removing this rule: "this is our highest priority [...] Literally all of our members have called about this".[19] And they got the upper hand: the SEC rule was finally dropped after intense lobbying and lawsuits.
In June 2018, Business Roundtable issued a statement urging the White House “Administration to end immediately the policy of separating accompanied minors from their parents,” and condemned the practice as “cruel and contrary to American values.” Authored by the organization's Immigration Committee chairman, Chuck Robbins, the statement also commended bipartisan lawmakers for working together to reform immigration policies, and was widely supported by the Business Roundtable chair and membership.[20][21]
Legislation
The Business Roundtable wrote a letter to members of the House strongly endorsing the
Together with the
BRT 2019 role of a corporation pledge
On August 19, 2019, the Business Roundtable released a new "Statement on the Purpose of a Corporation." Signed by nearly 200 chief executive officers,[24] including Amazon's Jeff Bezos, Apple's Tim Cook, General Motors' Mary Barra and Oracle's Safra Catz, the group seeks to "move away from shareholder primacy," a concept that had existed in the group's principles since 1997, and move to "include commitment to all stakeholders." It notes that "businesses play a vital role in the economy" because of jobs, fostering innovation and providing essential services. But it places shareholder interests on the same level as those of customers, employees, suppliers and communities. "Each of our stakeholders is essential," the statement says. "We commit to deliver value to all of them, for the future success of our companies, our communities and our country."[25][26][27]
Criticism of 2019 pledge
In September 2019, Bezos was cited as the "first CEO to break his pledge" by the Los Angeles Times.[28] He no longer appeared on the BRT membership roster in 2021.[8] In July 2021, prior to stepping down as CEO, Bezos nonetheless added "Strive to be Earth’s Best Employer" to Amazon's set of leadership principles.[29]
Former US secretary of labor and professor of public policy at
US Senator Elizabeth Warren, in September 2020, addressed the BRT in correspondence. The "withering, 11-page letter to past and present leaders of the Business Roundtable (BRT)" states that the BRT violates its August 2019 pledge to prioritize stakeholder value, calling the mandate an "empty gesture".[32]
In August 2021, Harvard Law School's Program on Corporate Governance found that the 2019 "Statement on the Purpose of a Corporation" represented no meaningful commitment by the BRT membership, citing the pledge made as "mostly for show".[33]
BRT Board of directors
Corporate CEO members of the board of directors of the BRT named in 2021 are:[34]
- BRT Chair Doug McMillon, Walmart
- BRT CEO and president Joshua Bolten, former White House Chief of Staff
- Craig Arnold, Eaton Corporation
- Mary Barra, General Motors
- Apple
- Jamie Dimon, JPMorgan Chase
- Corie Barry, Best Buy
- Bechtel Group
- Dow Inc.
- Beth Ford, Land O'Lakes
- Lance Fritz, Union Pacific Corporation
- Lynn Good, Duke Energy
- Alex Gorsky, Johnson & Johnson
- Tricia Griffith, Progressive Corporation
- Raytheon Technologies
- James Keane, Steelcase Inc.
- Rich Lesser, Boston Consulting Group
- George Oliver, Johnson Controls
- Douglas L. Peterson, S&P Global
- Cisco Systems
- Dan Schulman, PayPal
- Robert F. Smith, Vista Equity Partners
- Arne Sorenson (1958 – 2021), Marriott International
- Julie Sweet, Accenture
- David S. Taylor, Procter & Gamble
President
- John Engler, 2010–2017
- Joshua Bolten, 2017–[35]
References
- ^ Hiltzik, Michael (August 19, 2021). "Column: Last year CEOs pledged to serve stakeholders, not shareholders. You were right not to buy it". Los Angeles Times. Retrieved August 18, 2021.
- ^ "Tax & Fiscal Policy".
- ^ "Business Roundtable Announces 2021 Board of Directors". businessroundtable.org. January 19, 2021. Retrieved August 18, 2021.
- ISSN 0362-4331. Retrieved January 31, 2023.
- ISSN 0362-4331. Retrieved January 31, 2023.
- ^ Jenkins, C., & Eckert, C. M. (2000). "The right turn in economic policy: Business elites and the new conservative economic". Sociological Forum, 15(2), 312.
- ^ Lichtman, A. J. (2008). White Protestant Nation: The Rise of the American Conservative Movement. Atlantic Monthly Press. p. 338.
- ^ a b "Membership". brt.org. Retrieved September 3, 2021.
- ISSN 0362-4331. Retrieved January 31, 2023.
- ^ Archives, L. A. Times (July 31, 1985). "Retired Alcoa Board Chairman John D. Harper Dies at Age 75". Los Angeles Times. Retrieved January 31, 2023.
- ISBN 978-1-84977-268-6.
- ^ Businessrountable.org "Archived Content"
- ISBN 9780887305344
- ^ Montgomery, Lori (June 23, 2010). "Business leaders say Obama's economic policies stifle growth". The Washington Post. Retrieved August 19, 2019.
- ^ Murray, Alan (August 19, 2019). "America's CEOs Seek a New Purpose for the Corporation". Fortune. Retrieved August 18, 2021.
- ISBN 9780684844565. Retrieved July 3, 2021.
- ISSN 0362-4331. Retrieved August 19, 2019.
- ^ "ISSUE: No Child Left Behind" via ParentAdvocates.org, under headline, "The Business Roundtable Supports the No Child Left Behind Legislation". Retrieved August 21, 2019.
- ^ The Washington Post; May 13, 2010.
- ^ Murray, Alan (June 20, 2019). "'This Is a Fundamental Issue:' Why Cisco CEO Chuck Robbins Challenged Trump on Border Separations". Retrieved June 27, 2019.
- ^ Robbins, Chuck (June 19, 2019). "Business Roundtable Statement on Immigration". Retrieved June 27, 2019.
- ^ a b c Cutler, Alexander M. (June 16, 2014). "BRT Letter to House on the Customer Protection and End-User Relief Act". Business Roundtable. Retrieved June 18, 2014.
- ^ Bernstein, Leandra. "Why big business is trying to sink Biden's $3.5T spending plan". kutv. Retrieved September 8, 2021.
- ^ "Our Commitment - Statement on the Purpose of a Corporation". businessroundtable.org. Business Roundtable. Retrieved August 28, 2021.
- ^ "Business Roundtable Redefines the Purpose of a Corporation to Promote 'An Economy That Serves All Americans'". www.businessroundtable.org. Retrieved August 19, 2019.
- ^ Fitzgerald, Maggie (August 19, 2019). "The CEOs of nearly 200 companies just said shareholder value is no longer their main objective". CNBC. Retrieved August 19, 2019.
- ^ Benoit, David (August 19, 2019). "Move Over, Shareholders: Top CEOs Say Companies Have Obligations to Society". Wall Street Journal. Retrieved August 19, 2019.
- ^ Hiltzik, Michael (September 16, 2019). "Jeff Bezos becomes the first CEO to break his pledge to dump the 'shareholder value' model". Los Angeles Times. Retrieved September 3, 2021.
- ^ Palmer, Annie (July 1, 2021). "Amazon sets a new tone as Jeff Bezos era comes to an end". CNBC. Retrieved September 3, 2021.
- ^ The Guardian, Robert Reich, "The biggest business con of 2019", 29 December 2019.
- ^ Shepardson, David; Rucinski, Tracy (January 10, 2020). "Boeing's ousted CEO departs with $62 million, even without severance pay". Reuters. Retrieved August 18, 2021.
- ^ Newmyer, Tory (September 18, 2020). "The Finance 202: Elizabeth Warren charges CEOs with fixating on profits despite do-gooder pledge". The Washington Post. Retrieved August 27, 2021.
- ^ Colvin, Geoff (August 5, 2021). "America's top CEOs didn't live up to their promises in Business Roundtable letter, researchers find". Fortune. Retrieved September 6, 2021.
- ^ "Business Roundtable Announces 2021 Board of Directors". businessroundtable.org. January 19, 2021. Retrieved August 18, 2021.
- ^ Business Roundtable, Official website, Leadership