A “Statement on the Purpose of a Corporation” signed by 181 CEOs is asking companies to lead for the benefit of all stakeholders, including customers, employees, suppliers, communities and shareholders.
Instead of a main objective of maximizing profits, these corporations say they’re aiming to improve the future for employees, business partners, communities and the environment by:
While many companies believe in corporate social responsibility (CSR), most have yet to fully institutionalize a comprehensive program. The innovators and early adopters are applying Business Roundtable’s new approach to their business models, and developing purpose-driven strategies that embody the full range of CSR, sustainability and ethical supply-chain management principles.
Here are some key factors:
As purpose-driven strategies drive ecosystem commerce, they’ll lead to eventual adoption of ecosystem resource planning, or ERP 4.0. Those not already pushing these strategies will soon be pushed by customers.
Market innovators and early adopters of ecosystem commerce have the best shot at achieving supplier compliance to purpose-driven policies. Soon, this kind of ethical enterprise supply-network management will not be optional.
Rich Sherman is senior fellow at Tata Consultancy Services.
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