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Online – Business Ethics Lecture
April 1 @ 4:00 pm - 5:15 pm
From Shareholder Value Maximization to Serving All Stakeholders – Groundbreaking Development or an Illusory Promise?
Ed Freeman, Elis and Signe Olsson Professor of Business Administration, University of Virginia, Darden School of Business
Anant Sundaram, Clinical Professor of Business Administration, Dartmouth College, Tuck School of Business
Edward Zajac, James F. Bere Professor of Management and Organizations, Northwestern University, Kellogg School of Management
Despite governance reforms in the last two decades, good corporate governance remains elusive. During that time, the number of U.S. corporations has declined despite a significant increase worldwide, and voices concerned with corporate myopia and short-termism have amplified. In response, the Business Roundtable issued a statement that the overarching purpose of the corporation is creating value for all stakeholders, a stark departure from the shareholder primacy they have endorsed since 1997. The Council of Institutional Investors countered with managerial responsibility to shareholders and creating long-term shareholder value. These reactions showcase the challenges faced by contemporary corporate governance: will stakeholder governance be a groundbreaking development or an illusory promise?
The distinguished panel of world-renowned scholars will address this state of corporate governance at crossroads, discussing governance problems from multiple perspectives. We hope that this debate will illuminate the bridges between stakeholder governance and shareholder primacy.