Skip to main content Accessibility help
×
Hostname: page-component-5c6d5d7d68-lvtdw Total loading time: 0 Render date: 2024-08-23T20:21:07.375Z Has data issue: false hasContentIssue false

8 - A Socially Responsible Corporate Governance Standard

Published online by Cambridge University Press:  30 April 2018

David Yosifon
Affiliation:
Santa Clara University School of Law
Get access

Summary

This chapter proposes a reform of corporate governance law in the United States that would require directors of large firms to pursue profits for shareholders, while also attending to the interests of other corporate stakeholders, including workers, consumers, communities, and the nation. This would make our corporate law more theoretically coherent, and more ethically sound.. The multi-stakeholder system would only apply to large corporations, those with a market capitalization of $100 million or more. Such institutional pluralism will ensure that all stakeholder interests are addressed in the boardrooms of the most powerful firms, while also keeping entrepreneurial dynamism running hot elsewhere in the economy. The law should require the multi-stakeholder approach in large firms, and then give directors wide latitude in determining how the command will shape corporate decisions. This will orient corporations towards responsible behavior, while leaving the substantive of corporate decision-making open to discovery, experimentation, and difference. Critiques of multi-stakeholder corporate governance proposals are reviewed, and defenses are offered.
Type
Chapter
Information
Corporate Friction
How Corporate Law Impedes American Progress and What to Do about It
, pp. 172 - 205
Publisher: Cambridge University Press
Print publication year: 2018

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×