Source: American Institute for Economic Research
by Robert T Miller
“There are two main theories of corporate governance: the shareholder theory and the stakeholder theory. The former, which originated in the earliest corporate law decisions of courts of equity in the nineteenth century, requires directors to manage the corporation for the long-term benefit of its shareholders. The latter, which is largely the creation of academics, holds that directors should balance the interests of all corporate stakeholders, including employees, customers, suppliers, creditors, and the communities in which the corporation operates. In an age of climate change, the class of stakeholders may expand to include all human beings now living or to be born in the future.” (07/16/26)
https://aier.org/article/shareholders-and-stakeholders-in-corporate-law/