Richards Kibbe & Orbe Discusses Limited Legal Implications of Business Roundtable Statement

The Statement on the Purpose of a Corporation by the Business Roundtable, a one-page document signed by nearly all the organization’s member CEOs,[1] has been dramatically portrayed by the media (with the BRT’s encouragement) as a new commitment by American public companies to pursue a vision sometimes known as “stakeholder capitalism”—a model of corporate governance that explicitly recognizes the interests of non-shareholder constituencies like employees, customers, suppliers, public interest groups and local communities.  This announcement of new concern for stakeholders is in turn portrayed as corporate America’s long-overdue abandonment of a myopic, shareholder-centric governance orthodoxy attributed to Milton Friedman … Read more