As Black Lives Matter protesters continue to march and communities take a hard look at the inequalities in our society, purposeful CEOs are taking action. Going beyond issuing statements of support, they are examining how they need to do more to address embedded system issues that don’t seem to get better over time, but in fact can grow worse.

Times of crisis put intense pressure on CEOs and leadership teams. How do we maintain business continuity? How do we support employees and their families? How do we reset expectations with investors when the future is uncertain? And how do we make tough calls on layoffs, closures, return to work and other critical decisions with a higher purpose in mind?

I am encouraged by the actions of many CEOs who are putting the safety and wellbeing of their employees and the larger world community ahead of short-term profits. This signals that they deeply understand the value of taking care of all stakeholders and that the decisions they make in the short-term for the greater good will ultimately benefit their companies in the long-term. 

The August 19th Business Roundtable news sparked an enormous amount of press–181 CEOs of the Business Roundtable signed a new statement of purpose for the corporation. These CEOs committed to lead their companies for the benefit of all stakeholders–customers, employees, suppliers, communities and shareholders, not just owners alone.  

This is a positive step. It was bold and unexpected. But it was considered lip service by many. And it was alarming to some.