King Arthur set up his legendary roundtable in a circle to show his comrades they were at a table of equals. Breaking from the mold of an all-powerful king with subjugated servants, there was no “head” of the roundtable. Last week, the CEOs that make up the Business Roundtable made a similar decree that all corporate stakeholders now are considered equal.
The ramifications are profoundly disturbing.
The Roundtable’s letter, endorsed by 181 of the 188 member-company CEOs, marks a dramatic shift away from the organization’s long-held belief that business should be run for the benefit of corporate shareholders. Its press release announced: “Business Roundtable Redefines the Purpose of a Corporation to Promote ‘An Economy That Serves All Americans.’ Updated Statement Moves Away from Shareholder Primacy, Includes Commitment to All Stakeholders.”