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CEOs from nearly 200 companies say shareholder value is no longer their top priority

Nearly 200 CEOs from the country's largest companies announced Monday that shareholder value is no longer their top priority, instead placing a greater focus on an "economy that serves all Americans."

In a statement on "The Purpose of a Corporation" by Business Roundtable — a group made up of more than 180 leaders from companies including Apple, Amazon, Walmart, Pepsi, and more — the executives said they share "a fundamental commitment to all of our stakeholders."

"Americans deserve an economy that allows each person to succeed through hard work and creativity and to lead a life of meaning and dignity. We believe the free-market system is the best means of generating good jobs, a strong and sustainable economy, innovation, a healthy environment and economic opportunity for all," the statement reads.

Over the last 40 years, the group has issued various documents on the principles of corporate governance, with an emphasis on serving shareholders and maximizing profits, but this new statement supersedes that notion, setting the standard for modern corporate responsibility.

"The American dream is alive, but fraying," Jamie Dimon, Chairman and CEO of JPMorgan Chase & Co. and Chairman of Business Roundtable, said in a statement. "Major employers are investing in their workers and communities because they know it is the only way to be successful over the long term. These modernized principles reflect the business community's unwavering commitment to continue to push for an economy that serves all Americans."

Alex Gorsky, Chairman of the Board and Chief Executive Officer of Johnson & Johnson, mirrored those sentiments, saying the statement "reflects the way corporations can and should operate."

Tricia Griffith, President and CEO of Progressive Corporation, said that the best-run companies "do more" than simply generate profit for shareholders by investing in their employees and communities and putting the customer first. "it's the most promising way to build long-term value," she added.

While the goals of the statement are admirable, critics are highly skeptical of the corporations' motives and doubtful they'll actually follow through.


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In an op-ed published by Crain's Chicago Business, columnist Joe Cahill argues these "busy corporate leaders" are likely only adding these new obligations to their "already-full plates" for political reasons

"CEOs face a rising tide of public discontent over a world economic system that many consider skewed to favor multinational corporations over ordinary citizens and communities," Cahill wrote.

"They've seen that tide of resentment put Donald Trump in the White House, where he's pursued policies that threaten international trade flows essential to global companies. And they're hearing Democratic presidential contenders call for more government intervention in markets.

"Income inequality and the widening pay disparities between CEOs and average workers fan the flames, while episodes like the Boeing 737 Max tragedies and Facebook's manipulations of private information reinforce impressions that companies care only about profits," he added.

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Others criticized the fact that Business Roundtable merely released a statement rather than making any real changes.

"Voluntary pledges didn't end child labor, sweatshops, 18-hour workdays, elderly penury, noxious air, poisoned rivers, toxic financial products or much besides," Anand Giridharadas, author of "Winners Take All: The Elite Charade of Changing the World," wrote on Twitter. "Why do we trust them to end an age of corporate greed and vast inequality?"

"It would be one thing if they said we're endorsing having the Delaware courts change this particular legal doctrine, or we're endorsing a bill in Congress," Walter Olson, a senior fellow at the libertarian Cato Institute, told the New York Post. "It's not really clear whether they're intending to replace any part of the system or do the same things are before, but … smile more."

Let's hope these business leaders put their money where their mouth is.

Business
via Collection of the New-York Historical Society / Wikimedia Commons

Fredrick Douglass was born into slavery in 1818. At the age of 10 he was given to the Auld family.

As a child, he worked as a house slave and was able to learn to read and write, and he attempted to teach his fellow slaves the same skills.

At the age of 15, he was given to Thomas Auld, a cruel man who beat and starved his slaves and thwarted any opportunity for them to practice their faith or to learn to read or write.

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Culture
via Thomas Ledia / Wikimedia Commons

On April 20, 1889 at the Braunau am Inn, in Upper Austria Salzburger located at Vorstadt 15, Alois and Klara Hitler brought a son into the world. They named him Adolph.

Little did they know he would grow up to be one of the greatest forces of evil the world has ever known.

The Hitlers moved out of the Braunau am Inn when Adolph was three, but the three-story butter-colored building still stands. It has been the subject of controversy for seven decades.

via Thomas Ledia / Wikimedia Commons

The building was a meeting place for Nazi loyalists in the 1930s and '40s. After World War II, the building has become an informal pilgrimage site for neo-Nazis and veterans to glorify the murderous dictator.

The building was a thorn in the side to local government and residents to say the least.

RELATED: He photographed Nazi atrocities and buried the negatives. The unearthed images are unforgettable.

For years it was owned by Gerlinde Pommer, a descendant of the original owners. The Austrian government made numerous attempts to purchase it from her, but to no avail. The building has served many purposes, a school, a library, and a makeshift museum.

In 1989, a stone from the building was inscribed with:

"For Peace, Freedom

and Democracy.

Never Again Fascism.

Millions of Dead Remind [us]."

via Jo Oh / Wikimedia Commons

For three decades it was home to an organization that offered support and integration assistance for disabled people. But in 2011, the organization vacated the property because Pommer refused to bring it up to code.

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In 2017, the fight between the government and Pommer ended with it seizing the property. Authorities said it would get a "thorough architectural remodeling is necessary to permanently prevent the recognition and the symbolism of the building."

Now, the government intends to turn it into a police station which will surely deter any neo-Nazis from hanging around the building.

Austria has strict anti-Nazi laws that aim to prohibit any potential Nazi revival. The laws state that anyone who denies, belittles, condones or tries to justify the Nazi genocide or other Nazi crimes against humanity shall be punished with imprisonment for one year up to ten years.

In Austria the anti-Nazi laws are so strict one can go to prison for making the Nazi hand salute or saying "Heil Hitler."

"The future use of the house by the police should send an unmistakable signal that the role of this building as a memorial to the Nazis has been permanently revoked," Austria's IInterior Minister, Wolfgang Peschorn said in a statement.

The house is set to be redesigned following an international architectural competition.

Communities
via Chela Horsdal / Twitter

Amazon's "The Man in the High Castle" debuted the first episode of its final season last week.

The show is loosely based on an alternative history novel by Philip K. Dick that postulates what would happen if Nazi Germany and the Empire of Japan controlled the United States after being victorious in World War II.

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Politics
via Mike Mozart / Flickr

Chick-fil-A is the third-largest fast food chain in America, behind McDonald's and Starbucks, raking in over $10 billion a year.

But for years, the company has faced boycotts for supporting anti-LGBT charities, including the Salvation Army, the Fellowship of Christian Athletes, and the Paul Anderson Youth Home.

The Salvation Army faced criticism after a leader in the organization implied that gay people "deserve to die" and the company also came under fire after refusing to offer same-sex couples health insurance. But the organization swears it's evolving on such issues.

via Thomas Hawk / Flickr

The Fellowship of Christian Athletes explicitly announced it was anti gay marriage in a recent "Statement of Faith."

God instituted marriage between one man and one woman as the foundation of the family and the basic structure of human society. For this reason, we believe that marriage is exclusively the union of one man and one woman.

The Paul Anderson Youth Home teaches boys that homosexuality is wrong and that same-sex marriage is "rage against Jesus Christ and His values."

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In 2012, Chick-fil-A's CEO, Dan Cathy, made anti same-sex marriage comments on a radio broadcast:

I think we are inviting God's judgment on our nation when we shake our fist at Him and say, "We know better than you as to what constitutes a marriage". I pray God's mercy on our generation that has such a prideful, arrogant attitude to think that we have the audacity to define what marriage is about.

But the chicken giant has now decided to change it's says its charitable donation strategy because it's bad for business...Not because being homophobic is wrong.

The company recently lost several bids to provide concessions in U.S. airports. A pop-up shop in England was told it would not be renewed after eight days following LGBTQ protests.

Chick-fil-A also has plans to expand to Boston, Massachusetts where its mayor, Thomas Menino, pledged to ban the restaurant from the city.

via Wikimedia Commons

"There's no question we know that, as we go into new markets, we need to be clear about who we are," Chick-fil-A President and Chief Operating Officer Tim Tassopoulos told Bisnow. "There are lots of articles and newscasts about Chick-fil-A, and we thought we needed to be clear about our message."

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Instead, the Chick-fil-A Foundation plans to give $9 million to organizations that support education and fight homelessness. Which is commendable regardless of the company's troubled past.

"If Chick-Fil-A is serious about their pledge to stop holding hands with divisive anti-LGBTQ activists, then further transparency is needed regarding their deep ties to organizations like Focus on the Family, which exist purely to harm LGBTQ people and families," Drew Anderson, GLAAD's director of campaigns and rapid response, said in a statement.

Chick-fil-A's decision to back down from contributing to anti-LGBT charities shows the power that people have to fight back against companies by hitting them where it really hurts — the pocket book.

The question remains: If you previously avoided Chick-fil-A because it supported anti-LGBT organizations, is it now OK to eat there? Especially when Popeye's chicken sandwich is so good people will kill for it?

Lifestyle

Oh, irony. You are having quite a day.

The Italian region of Veneto, which includes the city of Venice, is currently experiencing historic flooding. Venice Mayor Luigi Brugnaro has stated that the flooding is a direct result of climate change, with the tide measuring the highest level in 50 years. The city (which is actually a collection of 100 islands in a lagoon—hence its famous canal streets), is no stranger to regular flooding, but is currently on the brink of declaring a state of emergency as waters refuse to recede.

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The Planet