Corporate Governance: Shareholders' Interests and Other Stakeholders' Interests

Corporate Ownership & Control / Volume 4, Issue 4, Summer 2007

7 Pages Posted: 30 Jul 2013

See all articles by Elena Pérez Carrillo

Elena Pérez Carrillo

Universidade de Santiago de Compostela; Fundación Mapfre

Date Written: 2007

Abstract

Much of the traditional Company Law doctrine considers that Corporations must be managed to promote, above all, shareholders’ rights. Activities in favour of non-shareholder constituencies such as suppliers, consumers, employees or the Community at large can be perceived as a means of Management to increase its power and personal prestige. Stakeholders’ interests can be interpreted as opposing Shareholders rights to obtain fair revenue for their investment. In this paper, we argue that Shareholders and Stakeholders interests are compatible and both contribute to corporate long term efficiency and progress. It is further argued that it is essential to achieve a wide consensus on how to control Management actions in support of Stakeholders interests.

Keywords: Shareholders, Stakeholders, Corporate Social Responsibility, Corporate Social

JEL Classification: M14, G34

Suggested Citation

Pérez Carrillo, Elena, Corporate Governance: Shareholders' Interests and Other Stakeholders' Interests (2007). Corporate Ownership & Control / Volume 4, Issue 4, Summer 2007. Available at SSRN: https://ssrn.com/abstract=2302532 or http://dx.doi.org/10.2139/ssrn.2302532

Elena Pérez Carrillo (Contact Author)

Universidade de Santiago de Compostela ( email )

R/ de San Francisco, s/n
Santiago de Compostela, 15782
Spain

HOME PAGE: http://www.usc.es/crgi

Fundación Mapfre ( email )

Paseo de Recoletos, 23
Madrid, 28004
Spain

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