ICSB in 2015 started advocating for a new perspective on what Business Corporations should mean to society, employees, stakeholders, and the world. In two separate articles published in the ICSB’s Journal for Small Business Management, co-authored by Drs. Ki-Chan Kim (co-founder of HumaneEntreprenuership) and Dr. Roberto Parente (Founder of the Salerno Declaration on Humane Entrepreneurship) ICSB became the first organization in the world to create a new business model for corporations to consider.
ICSB also set in motion a series of global events hosted by partners in Seoul, Washington DC, Paris, Cairo, Tokyo, Jakarta, New York, Dubai, Salerno, Buenos Aries with a goal of discussing this new topic and putting a comprehensive model for Humane Entrepreneurship to further build awareness and support. The most recent United Nations event on MSMEs Day also focused on the topic of Humane Entrepreneurship.
ICSB supported various partner declarations to put a new proposed Humane Entrepreneurship framework as follows:
The function of organizations, globally, goes far beyond purely bottom‐line incentives. Investing in human capital can be a springboard for diversification of national wealth and the economy, reducing many countries’ dependence on natural capital and the commodity‐driven boom‐and‐bust cycles common to many low and middle‐income countries. Humane Entrepreneurship is a relatively new theory, but we believe it raises substantial questions regarding positive, sustainable business practices.
ICSB is very proud to announce that the Business Roundtable, a group of chief executive officers from major U.S. corporations, issued a statement Monday with a new definition of the “purpose of a corporation” confirming ICSB’s vision and work on Humane Entrepreneurship since 2015. They stated:
The reimagined idea of a corporation drops the age-old notion that corporations function first and foremost to serve their shareholders and maximize profits. Rather, investing in employees, delivering value to customers, dealing ethically with suppliers and supporting outside communities are now at the forefront of American business goals, according to the statement.
“While each of our individual companies serves its own corporate purpose, we share a fundamental commitment to all of our stakeholders,” said the statement signed by 181 CEOs. “We commit to deliver value to all of them, for the future success of our companies, our communities and our country.” While each of our individual companies serves its own corporate purpose, we share a fundamental commitment to all of our stakeholders. We commit to:
– Delivering value to our customers. We will further the tradition of American companies leading the way in meeting or exceeding customer expectations.
– Investing in our employees. This starts with compensating them fairly and providing important benefits. It also includes supporting them through training and education that help develop new skills for a rapidly changing world. We foster diversity and inclusion, dignity and respect.
– Dealing fairly and ethically with our suppliers. We are dedicated to serving as good partners to the other companies, large and small, that help us meet our missions.
– 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.
– Generating long-term value for shareholders, who provide the capital that allows companies to invest, grow and innovate. We are committed to transparency and effective engagement with shareholders.
Please read full staement: BusinessRoundtableStatementonthePurposeofaCorporation
