Using Corporate Governance Law to Benefit All Stakeholders

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Essay: A New Era for Corporate Law: Using corporate governance law to benefit all stakeholders. Kent Greenfield



"Law is essential to make the corporation successful. Yet under present law, a corporation meets its obligations if it creates wealth only for its shareholders. This is a narrow view of corporate purpose. Responsible corporate leadership is about creating value not only for shareholders but for employees, customers, and communities as well. In this view, management could be required to owe fiduciary duties to the firm as a whole, and corporate boards could be reconstituted to include representatives of various stakeholders. Approaches like these – using corporate law reform to address social issues – could be more efficient than existing regulatory options." (