Those companies that are focused value creation are the preferred choice as partners in business for modern corporations, claimed Salesforce’s Keith Block in an interview to a television channel.
That is the reason that Salesforce decided to be part a group of about 200 other companies and businesses that have recently taken pledge to shift corporate objective of everything for the shareholder to focusing on according equal importance to all stakeholders, Block said.
These comments were made by the co-CEO of the company in reply to questions about how the company is having an “Impact Per Share” which is related to what measures the companies are undertaking to promote initiates that are eco-friendly and sustainable.
Block said in the interview that on top of catering to shareholders, “it’s about stakeholders, it’s about your employees, it’s about you partners and suppliers. It’s about the community, it’s about the environment.”
“When we speak to CEOs all over the world, they want to know what our values are all about. And if they’re going to bet their business on us, they want to be aligned with those values,” he said.
The Business Roundtable, a group of chief executive officers from major U.S. corporations led by J.P. Morgan Chase’s Jamie Dimon, released a statement earlier this week about the “purpose of a corporation.”
A beat-and-raise quarterly result was announced by Salesforce on Thursday after the close of markets on Thursday. The company beat market expectations in earnings and revenue and upgraded its forecast for the full year.
There was a 22 per cent growth of revenues during the quarter at $4 billion and the forecast for the entire year was enhanced to $16.9 billion that would be equal to a 27 per cent year-over-year growth, Block said.
“A lot of this, Jim, is really powered by this wave of digital transformation that we’re seeing all over the world,” he said. “Everybody needs to get closer to the customer, everybody is trying to improve that customer experience, and that’s where Salesforce really brings value to the table.”
The US tariffs on Chinese imports and services apparently has not impacted Salesforce. According to Block, this phenomena is due to the continued investments by companies ion digitization of operations.
“That’s why you’re seeing this growth, you’re seeing these results,” he said. “And we’re just co-innovating and co-creating with these companies and that’s why we’re having so much success on their behalf.”
Shares of Salesforce rose slightly on Thursday ahead of its earnings call. The stock climbed 7% in after hours trading.
(Adapted from CNBC.com)