Governance has been dominated by a dabate over shifting from shareholder primacy to a stakeholder model. A new study suggests that despite public pledges, US companies show little sign of changing tack.
Business Roundtable chair and JP Morgan CEO Jamie Dimon at the Fortune Global Forum. Image by Fortune Live Media, licensed under CC BY-NC-ND 2.0
Have companies become more focused on stakeholders and toned down their attention to the interests of shareholders? Many argue there has been a shift but Harvard academics say they have evidence that is it is more like business as usual.
After looking the evidence from 48 US companies signed up to a ground breaking pledge to work for “all stakeholders” rather than shareholders alone, Lucian Bebchuk and Roberto Tallarita, experts in governance at Harvard Law School, conclude than in reality nothing much has changed.
Writing in the Wall Street Journal, the pair say: “Notwithstanding statements to the contrary, corporate leaders are
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