Reinforcing the view that change is in the air in regard to how big business interfaces with the wider community, in August 2019, the US Business Roundtable, <\/a>an important assembly of leading American business organisations, published The Statement on the Purpose of a Corporation<\/em>, signed by 181 influential CEOs. <\/p>\n\n\n\n It could be argued that this publication upturns decades of business orthodoxy with a big swing towards a possible new order. Is this the beginning of a new \u2018Social Capitalism\u2019 in the USA? <\/p>\n\n\n\n The underlying tone of The Statement on the Purpose of a Corporation<\/a><\/em> <\/a>was a radical departure from the past. It would represent apostasy for some capitalists, hard-nosed business people and some politicians. Its opening paragraph stated:<\/p>\n\n\n\n Americans\ndeserve an economy that allows each person to succeed through hard work and\ncreativity and to lead a life of meaning and dignity. We believe the\nfree-market system is the best means of generating good jobs, a strong and\nsustainable economy, innovation, a healthy environment, and economic\nopportunity for all. <\/p>\n\n\n\n These words are at odds with\nthe thought of Milton Friedman the US Nobel laureate whose economic thinking about\ncapitalism and business exercised considerable influence from the 1970s. The Friedman\ndoctrine states \u2018there is one and only one social responsibility of business –\nto use its resources and engage in activities designed to increase its profits\u2019.\nIn other words, Friedman thought that the first and only rule of business is to\nincrease the wealth of shareholders. If taken literally, this paragraph stands\nin stark contract measured against the experience of most people, and the slow\nrate of wage growth.<\/p>\n\n\n\n The Statement on the Purpose of a Corporation<\/em> expresses the widening recognition that businesses\nhave social obligations not just to shareholders, but also to their workforce\nand suppliers, as well as their societies and community wellbeing. <\/p>\n\n\n\n This demand for greater\nresponsibility and accountability has been graphically exemplified in Australia\nby the recent Royal Commission into<\/em> Misconduct in the Banking, Superannuation\nand Financial Services Industry<\/em>. The Royal Commission was a devastating\ncritique of the scandal-ridden financial institutions. What change is finally\nachieved is yet to be determined.<\/p>\n\n\n\n What then are the signs of change going on in big business? Here are some facts to ponder.<\/p>\n\n\n\n A 2016 Harvard University study <\/a>found that 51% of US respondents between the ages of 18 and 29 did not support capitalism; a third, surprisingly for the USA, favoured \u2018socialism\u2019. Presumably most had in mind more equitable opportunities and social services such as exist in northern Europe, Canada or Australia. These university students will be among the leaders of tomorrow. <\/p>\n\n\n\n The Australian Council of Superannuation Investors in September 2019 published the results of its annual survey of Australian CEO remuneration for the 2018-19 <\/a>financial year, which showed that the top three CEOs were paid respectively, $23.88m, $23.86m and $19.02m. The immediate media response to this news was characterised by revulsion and a clear view that such remuneration is quite excessive and immoral. <\/p>\n\n\n\nHow are businesses embracing social responsibilities?<\/h3>\n\n\n\n