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Last week marked the five-year anniversary of the Business Roundtable’s transformative statement on the purpose of a corporation. In August 2019, the Roundtable’s declaration emphasized that delivering long-term value extends beyond shareholders to encompass all stakeholders—customers, employees, suppliers, and the communities in which companies operate. This, of course, is the perspective our team has championed for decades.
The BRT's statement signaled a departure from a narrower focus on shareholder primacy, advocating instead for a more holistic approach where stakeholder interests are viewed as interconnected. The years since BRT's declaration have proven to be a true test to companies, with a pandemic that squeezed supply chains, turned front-line workers into heroes, and upended the idea that employees need to be in an office to be successful. Despite those challenges, we witnessed how companies, guided by an ethos to serve their stakeholders, were not only able to drive substantial economic growth but also positive social impact. Now, the Business Roundtable is continuing to advance it's position that companies can do good and do well, with supporting programs that range from second chance employment (read our story one one such effort below) to mental health initiatives. —Kristin Kenney, Director
🥵 Building relief during heat waves: It's been a hot summer, and as extreme heat drives up electricity bills for 70% of Americans, innovative building designs could offer relief. A new study out of Hong Kong Polytechnic University explores a zigzag-shaped wall that reflects heat from two directions (the sky and the ground), helping buildings stay up to 5.5 degrees Fahrenheit cooler. This design, which involves coating each surface differently, could reduce HVAC energy use by 14% in midsize apartment buildings, lowering both costs and emissions. While particularly beneficial in hot cities with mild winters, the design could significantly reduce air conditioning reliance, making it a promising solution for combating heat waves.
🙅♀️ Keeping quiet on policy issues: A recent Bentley University and Gallup survey revealed that only 38% of U.S. adults believe businesses should take public stances on current events, a decline from 2022. Support for corporate commentary has decreased across nearly all demographics, with Democrats, Black adults, and Asian adults showing the largest drops. However, LGBTQ+ adults, Black adults, and Democrats still show support. Despite the general decline, narrow majorities favor businesses speaking out on issues like climate change, mental health, and diversity. Conversely, fewer Americans want businesses to address more contentious topics, such as gun laws, immigration, or abortion.
🧦 Stitching the future: FutureStitch, a sustainable knits manufacturer, is leading the way in "second chance hiring" by employing formerly incarcerated individuals in an effort to reduce recidivism. The company's SecondStitch program provides justice-impacted employees with not just jobs, but training, education, and access to essential resources, fostering growth and stability. With a retention rate of more than 90% for formerly incarcerated employees, FutureStitch is proving that with the right support, these individuals can thrive.
Triple Pundit—More than socks: How a knit manufacturer is changing lives with second chances
SecondStitch—About
Listen as Jennifer Lawson, President and CEO of Keep America Beautiful, introduces the Greatest American Cleanup, a nationwide effort to beautify communities ahead of America’s 250th birthday. Discover how this 70-year-old nonprofit is rallying individuals and leaders across the country to plant trees, clean up litter, and unite people in a common cause that transcends political divides.