Howshouldstakeholderconflictsof interestbedecided

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Unformatted text preview: have discretion, but duty is to Copyright 2013 Copyright 2013 shareholder profit – Business judgment rule Corporate Governance: As a Legal Concept ­ Problems Do they go as far as Milton Friedman? Is there an opening for other stakeholder interests? How should stakeholder conflicts of interest be decided? Copyright 2013 Copyright 2013 Corporate Governance: As a Legal Concept ­ Con’t Social Equity Concept – Purpose ­ Produce value for shareholders – Plus: Advance the general welfare – Vehicle ­ Directors oversee a ‘fair’ (dealing with ambiguity) return to investors – Plus: A duty of loyalty to all stakeholders Have the size and power of corporations made this view an essential element of public policy? Copyright 2013 Copyright 2013 Does globalization necessitate this view? Corporate Governance: As a Legal Concept: Con’t Do Directors try to have it both ways when they use short term or long term interests of shareholders to justify their own current self interests? Copyright 2013 Copyright...
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