What do companies owe their communities?

Oct 17, 2019

In August, the US Business Roundtable, which represents the CEOs of some of America’s largest companies, issued a statement suggesting that American businesses were beholden not just to shareholders, but also to stakeholders such as suppliers and employees—and that those businesses also had responsibilities to the communities in which they operate. But what are those responsibilities, how should companies go about fulfilling them, and how should we reconcile those responsibilities with the rights of the shareholders who own the companies? On this episode of the Big Question, Chicago Booth Review’s Hal Weitzman talks with Chicago Booth’s Luigi Zingales, Emily Heisley Stoeckel of the Heico Companies, and Daniel Anello of Kids First Chicago to consider what companies owe to the communities that support them.