The Business Roundtable’s August 2019 pledge to redefine the purpose of a corporation as one that “promote[s] an economy that serves all Americans” was seen as a historic step for corporate responsibility—and nothing has put that commitment to the test like the COVID-19 pandemic, the subsequent economic fallout, and the heightened attention on racial inequality over the past few months.
Did the 181 business leaders who signed the pledge rise to meet their promise of stakeholder governance? Did they step up during these crises to take care of their workers’ jobs and health and answer their communities’ calls for equity? According to a new study: not really.
A study released on September 22 from KKS Advisors, a consultancy group that focuses on sustainability strategies, and A Test of Corporate Purpose, an initiative formed in 2020 to assess how purpose-driven companies have responded to the recent crises, takes a look at