Business Roundtable: Enough Talk about Stakeholders. Time for Action!
Chief executives who are members of the Business Roundtable, include, left to right, front row: Julie Sweet of Accenture North America, Brian Moynihan of Bank of America, Tim Cook of Apple, Robert F. Smith of Vista Equity Partners of Austin. Back row: Jeff Bezos of Amazon, Mary Barra of General Motors and Larry Fink of BlackRock. Source: New York Times, April 19, 2020, “Shareholder Value Is No Longer Everything, Top C.E.O.s Say,” https://www.nytimes.com/2019/08/19/business/business-roundtable-ceos-corporations.html
We applaud the Business Roundtable’s August 2019 release of a new Statement on the Purpose of a Corporation in an effort to promote a thriving U.S. economy “that serves all Americans.” One hundred eighty one top CEOs in the BR redefined the obligation of companies to stakeholders to go beyond shareholders and include employees, suppliers and communities. The COVID and George Floyd crises make action even more essential today.Sounds great but where should they begin?
The best solution is more U.S. jobs. The best way to get the jobs is to reverse past offshoring, to reshore, with the potential to add 3 million well-paid manufacturing jobs.
The Reshoring Initiative® calls on these 181companies and their management to follow their CEOs’ commitment as follows:
- Reevaluate all offshoring. About 20 to 30% of what the companies are importing can be supplied in the U.S. with equal or greater profit. No harm to shareholders!
- The Reshoring Initiative’s free online TCO Estimator is the key to reevaluating, allowing companies to quantify all supply chain costs and risks. Stop buying the cheapest product. Instead buy the one with the lowest total cost.
We call on communities; employees and suppliers to demand these companies start reevaluating and reshoring now:
- Suppliers: Use the Reshoring Initiative’s Import Substitution Program (ISP) to identify which companies are importing products you make well. Then use TCO to convince the companies to buy from you instead of importing.
- Employees: Procurement often ignores the impact of offshoring on inventory, stocking out, travel, late night phone calls, IP risk, warranty, etc. Gather internal allies to convince procurement or the CEO to reevaluate.
- Communities: Economic developers can use ISP to identify large local importers and TCO to help the importers see the benefits of producing or sourcing locally. Call on the suppliers for help.
- Call on the Reshoring Initiative to help. 1 (847) 867-1144
Business Roundtable Redefines the Purpose of a Corporation to Promote ‘An Economy That Serves All Americans’August 19, 2019
Statement on the Purpose of a CorporationAmericans deserve an economy that allows each person to succeed through hard work and creativity and to lead a life of meaning and dignity. We believe the free-market system is the best means of generating good jobs, a strong and sustainable economy, innovation, a healthy environment and economic opportunity for all. Businesses play a vital role in the economy by creating jobs, fostering innovation and providing essential goods and services. Businesses make and sell consumer products; manufacture equipment and vehicles; support the national defense; grow and produce food; provide health care; generate and deliver energy; and offer financial, communications and other services that underpin economic growth. 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. Each of our stakeholders is essential. We commit to deliver value to all of them, for the future success of our companies, our communities and our country. https://opportunity.businessroundtable.org/ourcommitment/
Signed by 181 CEOs who commit to lead their companies for the benefit of all stakeholders – customers, employees, suppliers, communities and shareholders.Total Cost of Ownership Estimator® TCO is a key tool in the sourcing decision process, quantifying whether the costs and risks avoided offset the often-higher U.S. manufacturing cost or price. Most of the issues are related to distance: freight, delivery, inventory, etc. Others are country-specific: rising wages, IP risk, political instability, etc. A broad range of costs and risks can be quantified using the free online Total Cost of Ownership Estimator®. Figure 1 shows the distribution of Chinese price and Chinese TCO across hundreds of products analyzed by TCO Estimator users.
Figure 2 shows that about 8% of imports from China were more profitably sourced here, based on Ex-Works price. The 8% rises to 32% if the decision is based on TCO. With 15% tariffs also added, the U.S. share rises to 46%. COVID-19 will eventually be history and Chinese deliveries will improve. Hopefully, U.S. companies will remember, prepare for future disruptions and reshore a large portion of what they have offshored.
6. The AES Corporation7. Aflac Incorporated 8. AK Steel Corporation 9. Allergan PLC 10. Alliant Energy Corporation 11. Altec 12. Amazon 13. American Airlines 14. American Electric Power 15. American Express Company 16. American Tower 17. Ameriprise Financial 18. Anthem, Inc. 19. Aon 20. Apple, Inc. 21. Aramark 22. Assurant, Inc. 23. AT&T Inc. 24. Ball Corporation 25. Bank of America Corporation 26. Baxter International Inc. 27. Bayer Corporation 28. Bechtel Corporation 29. Best Buy Co. Inc. 30. BlackRock, Inc. 31. The Boeing Company 32. Borgwarner Inc. 33. Boston Consulting Group 34. BP PLC 35. BP 36. Bristol-Myers Squibb 37. C.V. Starr & Co., Inc. 38. The Carlyle Group 39. Caterpillar Inc. 40. CBRE Group, Inc. 41. CF Industries 42. Chevron Corporation 43. Chubb 44. Cigna Corporation 45. Cisco Systems, Inc. 46. Citigroup Inc. 47. CNH Industrial 48. The Coca-Cola Company 49. Cognizant 50. Comcast Corporation 51. ConocoPhillips 52. Corning Incorporated 53. Cummins Inc. 54. Cushman & Wakefield 55. CVS Health 56. Day & Zimmermann 57. Dell Technologies Inc. 58. Deloitte Global 59. Dow 60. Duke Energy Corporation 61. DXC Technology 62. Eastman Chemical Company 63. Eaton 64. Edison International 65. ExxonMobil Corporation 66. EY 67. FedEx Corporation 68. FIS 69. Flex 70. Fluor Corporation 71. Ford Motor Company 72. Fox Corporation 73. Freeport-McMoRan Inc. 74. General Dynamics Corporation 75. General Motors Company 76. The Goldman Sachs Group, Inc. 77. Grant Thornton LLP 78. The Guardian Life Insurance Company of America 79. Hanesbrands Inc. 80. Harman International 81. Hearst Corporation 82. The Home Depot, Inc. 83. Honeywell 84. Huntington Ingalls Industries 85. IBM Corporation 86. INFOR 87. International Paper Company 88. Interpublic Group 89. ITC Holdings Corp. 90. Jacobs 91. John Deere 92. Johnson & Johnson 93. Johnson Controls 94. JPMorgan Chase & Co. 95. KeyCorp 96. Kiewit Corporation 97. KPMG LLP 98. L3Harris Technologies, Inc. 99. Land O’Lakes Inc. 100. Leidos Holdings, Inc. 101. Lennar Corporation 102. Lockheed Martin Corporation 103. LyondellBasell Industries 104. Macy’s Inc. 105. Mallinckrodt Pharmaceuticals 106. Marathon Oil Corporation 107. Marathon Petroleum Corporation 108. Marriott International, Inc. 109. MasMutual 110. Mastercard 111. McCormick & Company 112. McKesson Corporation 113. McKinsey & Company 114. Medtronic, Inc. 115. MetLife, Inc. 116. Micron Technology, Inc. 117. Moelis & Company 118. Moody’s 119. Morgan Stanley 120. Motorola Solutions 121. NASDAQ 122. National Gypsum Company 123. New York Life Insurance Co. 124. Noble Energy, Inc. 125. Northrop Grumman Corporation 126. Novelis 127. NRG Energy, Inc. 128. Oracle Corporation 129. Owens Corning 130. PepsiCo 131. Pfizer Inc. 132. Phillips 66 133. Pitney Bowes Inc. 134. Principal 135. The Procter & Gamble Company 136. Progressive Corporation 137. PWC 138. Qualcomm Incorporated 139. Quanta Services 140. Raytheon Technologies Corporation 141. Rockwell Automation, Inc. 142. S&P Global Inc. 143. Salesforce 144. SAP 145. SAS Institute 146. Schnitzer Steel Industries, Inc. 147. Sempra Energy 148. Siemens Corporation USA 149. Silver Lake 150. Southern Company 151. Stanley Black & Decker, Inc. 152. Steelcase Inc. 153. Stryker Corporation 154. Suffolk Construction Company, Inc. 155. Synchrony 156. Target Corporation 157. TC Energy 158. Telephone & Data Systems, Inc. 159. Texas Instruments Incorporated 160. Tishman Speyer 161. The Travelers companies, Inc. 162. TSYS 163. Turner Construction Company 164. Union Pacific Corporation 165. United Airlines 166. United Technologies Corporation 167. UPS 168. USAA 169. Vanguard 170. Verisk Analytics 171. Visa, Inc. 172. Vista Equity Partners 173. Vistra Energy 174. Walgreens boots Alliance, Inc. 175. Walmart 176. Wells Fargo & Company 177. WESCO International, Inc. 178. Western & Southern Financial Group 179. Western Union 180. Whirlpool Corporation 181. Wipro Limited 182. World Fuel Services Corporation 183. World Wide Technology, Inc. 184. Xerox Corporation 185. Xylem Inc. 186. Zebra Technologies Corporation 187. 3M ---