The proposed Act would give directors and investors revised fiduciary duties “that extend beyond responsibility for financial return”.
The US debate over the future of capitalism continues to flare with a proposal for new legislation that would shift companies away from “shareholder primacy” and into the realm of “stakeholder governance”.
A newly published white paper, from non-profit organisations B Lab and The Shareholder Commons, proposes the US push through a Stakeholder Capitalism Act containing measures to give both company directors and investors revised fiduciary duties.
In an article for the Harvard Law School governance blog, the paper's authors argue that there is a need for urgent reform while insisting the best elements of capitalism must be retain
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