Family-owned businesses often wear many hats in their communities. They provide goods and services, create local jobs, and help shape community values and standards.
But with that influence comes a pressing question: Who comes first—the shareholder or the stakeholder?
In 2019, a group of prominent CEOs signed the Business Roundtable’s Statement on the Purpose of a Corporation, shifting the traditional corporate focus away from maximizing shareholder value toward creating value for all stakeholders.
The statement sparked intense debate. Critics, including Warren Buffett, argued that this new approach blurred the lines of corporate responsibility.
This article explores the tension behind those competing perspectives—and what’s at stake for family-owned businesses navigating the divide.
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