CEOs Say Shareholder Value Isn’t Everything
Publicly trade companies have a duty to do much more than deliver hefty dividends to shareholders, says the Business Roundtable.
The group’s statement, cosigned by 181 CEOs, refutes the view dating back more than 30 years that companies exist mainly to benefit their shareholders. Critics say that philosophy has pushed businesses—and Wall Street—to focus on short-term results and create huge compensation packages for top executives.
The Business Roundtable say it is “modernizing” the role of a corporation by expanding its definition to five equal core goals: delivering value to customers, investing in employees, dealing fairly with suppliers, supporting the local community and generating long-term value for shareholders.
Among CEO signatories in the transportation sector are Mary Barra (General Motors), Jim Hackett (Ford), Frederic Lissalde (Borg Warner), Craig Arnold (Eaton), Steve Fisher (Novelis) and Lisa Davis (Siemens USA).
Other CEOs represent such companies as Amazon, American Express, Apple, Bechtel, Boeing, Cisco Systems, Coca-Cola, Dell, Dow, Exxon Mobil, Fox, Hearst, IBM, Marriott, Mastercard, Oracle, Pepsico, Procter & Gamble, Steelcase, UPS, Visa, Walmart and Xerox.
Although the RAV4 has plenty of heritage in the small crossover segment, competition has gotten a whole lot tougher, so Toyota has made significant changes to the fourth-generation model.
For conducting business in the U.S. market, Toyota has historically had several separate business entities: a sales and distribution company headquartered in California (Toyota Motor Sales, USA); manufacturing operations (Toyota Motor Manufacturing North America); a racing subsidiary (Toyota Racing Development, USA); the Toyota Technical Center for R&D in Ann Arbor; and a design facility in California (Calty Design Research, Inc.). On April 1, 2006, Toyota merged its R&D operations and its manufacturing operations into a single company.
It’s the fifth generation of a vehicle that has been increasing in sales year after year since its introduction in 1997.