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This past week, 181 Business Roundtable CEOs signed a new statement on the purpose of a corporation. The most important change is to take into account all stakeholders including customers, employees, suppliers, communities, and shareholders. This changes the way any corporation adopting this thinks about everything they are doing.

A lot of corporations have been following the Friedman Doctrine in which Milton Friedman suggested that “the social responsibility of business is to increase its profits.” Doing that then allows the business’s shareholders to decide which social initiatives they choose to pursue with their shares of the profits.

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