Business Roundtable today endorsed the Commonsense Principles of Corporate Governance 2.0 as a meaningful advancement of effective and responsible corporate governance practices. The newly-revised principles were developed by a group of prominent CEOs and investment managers. They emphasize that public companies should be managed with the highest ethical standards and a focus on long-term, broad-based economic prosperity – both of which are fundamental corporate governance principles held by Business Roundtable.
“The Commonsense Principles of Corporate Governance 2.0 are an important step forward in promoting corporate governance practices that support responsible and sustainable economic growth in the United States,” said Alex Gorsky, Chairman and CEO of Johnson & Johnson and Chair of the Business Roundtable Corporate Governance Committee. “Like the Business Roundtable Principles of Corporate Governance, the Commonsense Principles embody the goal of increasing long-term value for customers, communities, shareholders and the millions of families who rely on U.S. public companies for employment and financial security.”
As business leaders representing every sector of the U.S. economy, Business Roundtable CEOs believe strongly that best-in-class corporate governance practices are essential to the long-term prosperity of American businesses, workers, consumers and communities. Additionally, Business Roundtable is committed to governance practices that increase integrity, accountability and effective engagement between public companies, boards of directors and investors. A continued focus on these priorities is critical to serving the needs of both shareholders and stakeholders while supporting job creation and economic opportunity throughout the United States.
“Business Roundtable welcomes the Commonsense Principles of Corporate Governance 2.0 and their emphasis on advancing both high ethical standards and long-term economic value creation for the American people,” said Joshua Bolten, President & CEO of Business Roundtable. “As the operating environment for U.S. public companies continues to evolve, it is more important than ever for corporations, CEOs and boards of directors to adopt and uphold meaningful corporate governance practices. Business Roundtable supports the leadership and forward thinking that the Commonsense Principles represent.”
Business Roundtable understands that wide variation exists among America’s businesses and in the corporate and ownership structures of America’s public companies. While no single approach or corporate governance principle may be right for all businesses, the need for companies to adopt and uphold meaningful corporate governance practices is clear. Business Roundtable looks forward to working alongside the Commonsense Principles group to further promote high standards for corporate integrity, shareholder engagement and long-term economic growth.