The American workforce is increasingly demanding its CEOs cater to all of its stakeholders, including customers, employees, actual shareholders and society as a whole.
This signals a major shift from the days of shareholder-driven companies, The Wall Street Journal reports today.
The Business Roundtable, a Washington-based nonprofit group of CEOs, signed on 181 CEOs this year to commit to all of their stakeholders. This was the first time since 1997 such a policy has been endorsed by the group, indicating a growing wave in management style changes.
Yet with such big promises, CEOs will be scrutinized to ensure their pledges are not just empty words. The report notes that U.S. corporations’ profits have largely gone to shareholders over the past 20 years, while the average worker has lagged behind.
One area of potential improvement noted in the report is company-executed increases in the minimum wage.
“Giving people a lift, expanding the middle class, helping them thrive and grow will also do the same for you,” Ajay Banga, CEO of Mastercard Inc., tells The Journal.
Read the full report here.