ArticleECGI Working Paper Series in Law

For Whom Is the Corporation Managed in 2020?: The Debate over Corporate Purpose

This paper revisits the longstanding debate over corporate purpose, examining tensions between shareholder primacy and stakeholder-oriented governance models, with a focus on legal, financial, managerial and political dimensions of this question.

In a thorough discussion of fiduciary duty, Rock argues that there are many misconceptions. For example, he states, "It is simply incorrect to claim that Delaware law requires directors to maximize the short term stock price when they believe that long term projects will be more valuable." Rock also points out that current debates over shareholder primacy arose due to the weakening of other vehicles -- such as legislation or tax policy -- for addressing society's or other stakeholders' interests. 

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ArticleMIT Sloan

Presents a framework for when companies should present forceful or tempered political positions based on their publicly stated values and materiality.

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Website

The Long-Term Stock Exchange (LTSE) listing standards include expectations that companies will take responsibility for long-term decision-making across strategy, governance, executive compensation, stakeholder engagement, and investor relations. These standards are designed to help businesses build sustainable value over time for all stakeholders, rather than focusing on short-term gains, allowing investors to better assess long-term capital investments.

 

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ReportSaylor Academy

This textbook section introduces major corporate and agency public-relations subfunctions: issues management, media and community relations, CSR and philanthropy, investor relations, marketing communications, government relations, lobbying, internal communication, crisis management, and more. It shows how communication, advocacy, and stakeholder engagement are structured inside organizations, shaping how they respond to risks, opportunities, and public scrutiny.

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