The Benefit Stance: Responsible Ownership in the Twenty-First Century

Alexander, Frederick

doi:10.2139/ssrn.3454518

Cited by 1 publication

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“…The first substantive reform to enable innovation is to require boards of directors to be accountable to all corporate stakeholders instead of exclusively shareholders; or, in the alternate, to be accountable to the corporation itself (Alexander 2016, 2020a; Greenfield 2006, 2014). This policy does not proscribe a certain kind of decision or outcome, nor does it specify how boards should balance the different interests of stakeholders.…”

Section: Stakeholder Governance Policies For Innovative Enterprisesmentioning

confidence: 99%

Economic Policies for Innovative Enterprises: Implementing Multi-Stakeholder Corporate Governance

Palladino

2021

Review of Radical Political Economics

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Large corporations dominate economic and social life in the United States and around the globe. The mainstream corporate governance ideology of “shareholder primacy” claims that the exclusive purpose of a corporation is to generate returns for shareholders, which means that governance decisions should be exclusively in their hands. However, shareholder primacy lacks a theory of how companies innovate, and instead focuses solely on allocation of corporate profits, misunderstanding the relationship of shareholders to the twenty-first-century corporation. The theory of the corporation as an innovative enterprise—engaged in productive innovation by producing higher-quality goods and services for lower unit costs—is an accurate way to understand what makes corporations successful producers. Stakeholder theory from progressive legal scholarship illustrates specific corporate governance institutions that can assist innovation, including fiduciary duty, stakeholder participation in decision making, and equity ownership. This article contributes to the growing literature refuting shareholder primacy by utilizing the theories of the innovative enterprise and multi-stakeholder governance to propose reshaping US corporate governance to better to serve innovation in production and a balance of power in distributional decision making. JEL classification: B50, D21, G30, G35, K22

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Section: Stakeholder Governance Policies For Innovative Enterprisesmentioning

confidence: 99%

Economic Policies for Innovative Enterprises: Implementing Multi-Stakeholder Corporate Governance

Palladino

2021

Review of Radical Political Economics

View full text Add to dashboard Cite

show abstract

The Benefit Stance: Responsible Ownership in the Twenty-First Century

Cited by 1 publication

References 0 publications

Economic Policies for Innovative Enterprises: Implementing Multi-Stakeholder Corporate Governance

Economic Policies for Innovative Enterprises: Implementing Multi-Stakeholder Corporate Governance

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