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Sticking The Landing: Making The Most Of The “Stakeholder Moment”, Kent Greenfield
Sticking The Landing: Making The Most Of The “Stakeholder Moment”, Kent Greenfield
Kent Greenfield
This paper illustrates that the shareholder primacy model is still the prevailing model especially as the proponents of the stakeholder model have not come up with a theoretically sound alternative. It is argued that all corporations' principal stakeholders should be protected by the imposition of fiduciary duties on managerial decision makers. Homogeneity on corporate boards can reinforce thinking that leads to bad decision making. The findings of various researchers into behavioural economics are considered. It is pointed out that the interests of the shareholders are rarely, if ever, the same as those of other stakeholders. This supports the idea that …
Are Shareholders Owners? Absolutely. And Absolutely Not, Kent Greenfield
Are Shareholders Owners? Absolutely. And Absolutely Not, Kent Greenfield
Kent Greenfield
Shareholder ownership is in reality ‘shareholder primacy,’ or ‘shareholder supremacy.’ An excessive focus on shareholder interests encourages managerial decisions that are overly risky from society’s perspective. Including broader stakeholder concerns at the senior level of corporate decision making will help roll back the short-termism of corporations.