I think we've got to look at corporate law. Back in the…
“I think we've got to look at corporate law. Back in the day when I studied it, there were different constituencies that were to be served, and I think there was a real wrong turn about 20 to 25 years ago when the theory began to be promoted that your highest duty - in fact, some would argue, your only duty - is to maximize shareholder return. I just don't buy it. And it wasn't the original underpinnings of the legal theory of corporate law.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
The quote argues that corporate law should serve multiple stakeholders, not just shareholders, and criticizes the shift toward sole focus on maximizing shareholder returns.
In simple terms: Corporate law should balance many interests, not only profit.
Key Takeaway
Consider broader stakeholder impact.
Themes
corporate governance
stakeholder theory
law
ethics
business
Mood
critical
analytical
Type
philosophical
policy
When to use this quote
- board meetings
- policy drafting
- shareholder meetings
- public debates
- academic courses
Key Concepts
shareholder primacy
stakeholder capitalism
legal theory
business ethics
Questions to Reflect On
- How would you redesign corporate duties?
- What are the risks of single‑purpose governance?
A Different Perspective
The focus on shareholders can ignore social and environmental responsibilities.