Graves Analysis of the Statement on the Purpose of a Corporation

The New York Times states in today's edition: "Shareholder Value Is No Longer Everything, Top C.E.O.s Say". Nearly 200 business leaders (including those from Amazon, Apple, JPMorgan, Coca Cola, Walmart, ...) are attempting the transition from the modern company to the postmodern company.

Here's the statement signed by all: Statement on the Purpose of a Corporation

The Wind of Change

Similar to the Greta phenomenon, where a school strike by a 16-year-old girl becomes a worldwide movement, the overall framework conditions seem to be changing. Generation Y, with a significantly higher level of Graves6 & Graves7 motivators, is establishing itself with each passing year. Partly by establishing agile, flexible, customer-centric companies with digital services. Partly by founding agile innovation teams in modern corporations. Now, the more political Generation Z is gradually entering the job market and reinforcing the generational shift.

From Modern (Graves5) to Postmodern (Graves6+)

Frederic Laloux refers to Graves5-centered companies as modern organizations in his bestseller "Reinventing Organizations". Maximizing shareholder value (market value) of a company is a central Graves5 value. From this fundamental attitude, top management should steadily expand the market value of a company for shareholders through profit maximization.

All actors now notice the wind of change, so it's not surprising when the bosses of the world's largest companies consider how they can continue to stay in the evolutionary flow. In their "Statement on the Purpose of a Corporation" (Statement on the Purpose of a Corporation), leading US business leaders relativize the central importance of shareholder value and place it within the framework of other fundamental attitudes:

The 5 New Fundamental Attitudes of US Business Leaders:

Customer at the center. Delivering value to our customers (Graves6)

Fair and ethical dealings with our suppliers (Graves6)

Fair compensation for employees. Investing in our employees through training and education that help develop new skills for a rapidly changing world. We foster diversity and inclusion, dignity and respect. (Graves6+7)

Supporting the communities in which we work. We respect the people in our communities and protect the environment by embracing sustainable practices across our businesses (Graves6+8)

Generating long-term value for shareholders, who provide the capital that allows companies to invest, grow and innovate (Graves5). We are committed to transparency and effective engagement with shareholders. (Graves6)

Conclusion

Even if we have to wait and see whether these are lip service or the beginning of real changes, a direction of social change is clearly visible. The economy - the central Graves5 block of society - is beginning to slowly open up as a whole towards Graves6, like a huge ocean liner slowly changing course.

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Graves Analysis of the "Statement on the Purpose of a Corporation"