shareholder value
Pursuing Stakeholder Capitalism Is an Impossible Task When Stakeholders Have Different Beliefs
Can companies really attempt to benefit all stakeholders, when stakeholders rarely agree on the best course of action? A new study examines Walmart’s 2019...
The Illusory Promise of “Stakeholderism”: Why Embracing Stakeholder Governance Would Fail Stakeholders
Stakeholderism—granting corporate leaders discretion to give weight to the interest of all stakeholders—should not be expected to deliver its purported benefits to stakeholders. Furthermore,...
Diversifying Corporate Boards — the Best Way Toward a Balanced Shareholder/Stakeholder System of Corporate Governance
Boards can recognize that their shareholders have needs beyond financial wealth maximization. Making corporate boards representative and diverse works better than co-determination or implied...
Friedman’s Principle, 50 Years Later
In the mid-1980s, Milton Friedman’s view that the only social responsibility of business is to increase its profits became dominant in business and academia....
Where Friedman Was Wrong
A new paper by Oliver Hart and Luigi Zingales argues that a company’s objective should be the maximization of shareholders’ welfare, not value.
In 1970,...
