Which of the following statements is true about black businesses and businesspeople today?

You may think that business is all about profit, business people are unethical and business in general is a black art of guile and greed. Over the years I have found this to be mostly untrue.

The story that business people are bad and what they do is morally questionable is false. For every Enron, there are 10,000 good companies. And most companies, like most people, are trying to do the right thing.

Business can solve the world’s problems. And more people are coming to believe that. Having observed business for more than three decades, I can tell things are changing. Thousands of new businesses are working to make the world a better place and, most importantly, add real value to our daily lives.

We need to recast the very way we think about business, especially in the aftermath of the global financial crisis, in which the old model of business — profit maximization — contributed to the meltdown.

Stakeholder Theory argues that stakeholders come first — whether they’re suppliers, investors, employees, customers or the community.

The old way of thinking about business presupposes the point of business is to make profits. This is akin to believing that breathing is the purpose of life. Yes, you have to breathe to live, just as businesses must make profits. But the purpose of business is usually determined by a passionate entrepreneur chasing a dream to change the world.

John Mackey, co-CEO of Whole Foods Market, is an example of the new order of those great business leaders who practice conscious capitalism. Mackey says that entrepreneurs — though they want to make money — start businesses out of passion. Think about it this way, he said: Physicians make money, but their mission is to heal; teachers make money, but their desire is to educate; and architects make money, but they yearn to build. The question then is: Why the myth that business people only want to make money?

The Motley Fool’s main mission, says its CEO Tom Gardner, is to help people become better investors. Kip Tindell, CEO of The Container Store, explains that taking good care of its 6,000 employees leads those employees to take very good care of customers and other stakeholders. The result is profit.

Putting Purpose Back Into Capitalism

Capitalism has always had its share of critics, who claim it leaves scandal, pollution and poverty in its wake. Capitalism may not be perfect, but it is the greatest system of social cooperation created thus far. Capitalism works because entrepreneurs and managers figure out how customers, employees, suppliers, communities and people with the money all can cooperate to mutual benefit. Competition is important, but it is a second-order property that gives people more choice in a free society.

Business is a deeply human institution, but its purpose is not to make as much money as possible. The purpose is something else. We need to put purpose back into capitalism because business is primarily about purpose and creating value for stakeholders — money and profits follow.

Business and ethics go hand in hand. Sometimes we act for selfish reasons and sometimes for other-regarding interests. Incentives are important, but so are values. Most people tell the truth and keep their promises and act responsibly most of the time. And we need to encourage that behavior. When these expectations are not met, it is not just bad ethics, it is also bad business.

Critique by creating something better. If you think that too many executives just concentrate on profits and money, then start a business that focuses on a purpose more than profits and relies on the passion of its employees.

How CEOs Put Principles Into Practice

On August 19, 2019, 181 CEOs of America’s largest corporations overturned a 22-year-old policy statement that defined a corporation’s principal purpose as maximizing shareholder return.

In its place, the CEOs of Business Roundtable adopted a new Statement on the Purpose of a Corporation declaring that companies should serve not only their shareholders, but also deliver value to their customers, invest in employees, deal fairly with suppliers and support the communities in which they operate.

The updated Statement better reflected the way CEOs endeavor every day to create value for all of their stakeholders and challenged companies to do more. Through a year of unprecedented crisis, the nation’s companies have held to their commitment and risen to the challenge. Business Roundtable companies have invested in workers, taken a leading role in fighting the pandemic, and supported the communities where they serve. Companies have powerfully demonstrated their commitment to work for the benefit of all stakeholders through the current crises.

During a time of tremendous challenge, Business Roundtable CEOs have shown what it means to live the principles we announced almost a year ago. Concurrent health, economic and racial crises have made clear how various systems are connected – and that multi-stakeholder capitalism is the answer to addressing our challenges holistically. America’s CEOs remain steadfast in our commitment to pursue economic prosperity and expanded opportunity for our employees, customers and the communities we serve.

Reflecting on the Anniversary

ON THE FIRST ANNIVERSARY OF BUSINESS ROUNDTABLE’S UPDATED STATEMENT ON THE PURPOSE OF A CORPORATION, CHAIRMAN DOUG MCMILLON AND BOARD MEMBER MARY BARRA REFLECT ON THE IMPORTANCE AND SHARE HOW COMPANIES HAVE DEMONSTRATED THEIR COMMITMENT TO WORK FOR THE BENEFIT OF ALL STAKEHOLDERS.

Spotlight on Employees & Communities

Business Roundtable member companies have always maintained that investing in employees and communities is important to generate profits and return value to shareholders. But the best-run companies do more. Roundtable CEOs are helping workers adjust to the rapid pace of change in the economy while working to revitalize local economies and ensure more inclusive prosperity. We’ve made progress but we know that there is more work to do.

Learn More About Employee Initiatives

Learn More About Community Initiatives

One year ago, the Business Roundtable redefined the Purpose of a Corporation because we believed it was important to articulate our values, share them with the world, and exemplify the principles in our actions. We could not have known how timely clarifying our commitment to leading our companies for the benefit of all our stakeholders would be ahead of the COVID-19 pandemic, and I’ve been proud to see how the private sector has stepped up — both in helping to address ongoing upheaval and uncertainty, and in continuing to evolve our businesses to be as diverse, equitable, and inclusive as possible.

One year later – through a period of unprecedented crises – companies have demonstrated a commitment to the values embedded in the Statement.

The challenges our country has faced the past year have tested us as individuals, families, businesses and communities. Business Roundtable CEOs have been focused on the COVID-19 pandemic and, more recently, confronting the hard realities of our nation’s longstanding and deep-seated issues surrounding racial equity and justice.

One year later – through a period of unprecedented crises – companies have demonstrated a commitment to the values embedded in the Statement.

Spotlight on COVID-19 Response & Rebuilding Together

Business Roundtable CEOs are contributing resources, creativity and innovations to help meet unprecedented challenges facing the country. America’s largest employers are taking action to protect their employees and customers, while delivering for the nation under tough circumstances with a dedicated workforce.

Learn More About Our Covid-19 Response And Recovery Recommendations

$863+ Million in monetary donations for COVID-19-related response efforts

Faced with the pandemic, companies have prioritized the health and safety of their employees and customers. They have raised wages and delivered bonuses to frontline workers. Many are giving generously to support their communities. Auto insurers are issuing premium rebates and credits back to their customers. Energy companies have vowed to keep power on for customers who are unable to pay. Companies have retooled operations to fill critical medical supply shortages, while others are at the forefront of efforts to develop a COVID-19 vaccine. Business Roundtable CEOs have also been using their influence to press policymakers for assistance to individuals and small businesses hard-hit by the crisis.

Spotlight on Advancing Racial Equity & Justice

Business Roundtable CEOs are committed to doing their part to listen, learn and use collective influence and scale to advance racial justice and equal opportunity for all Americans.

Learn More About Our Work On Racial Equity And Justice

$2.26+ Billion in financial commitments for racial equity and justice efforts

In recent weeks, as the nation reckons with racial inequity injustices, CEOs are making new commitments to ensure diversity in their companies. They are helping local communities address economic and racial inequality, establishing multimillion-dollar scholarship programs for college-bound Black students and promising recipients full-time jobs, and committing millions of dollars to support Black and minority-owned U.S. businesses. Business Roundtable CEOs are using their collective voice to advocate for policies that affect their employees, customers, suppliers and communities, most recently, calling on Congress to find common ground on police reform.

CEO Perspectives

Are a form of group normally dedicated to production or problem solving?

Which of the following are core principles in business communications?

Which of the following statements is true about an organization's informal network?

When experiencing a difference of opinion with others in a business social media context which of the following actions should you take multiple choice question?