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.