Re-Evaluating Shareholder Primacy in the Post-Crisis Context: Book Review of Law, Corporate Governance and Partnerships at Work by Richard Mitchell et al. (Ashgate Publishing, 2011)
27 Pages Posted: 10 Jan 2014
Date Written: December 17, 2013
The recent string of corporate scandals and economic crises have reminded us of the far reaching effects of corporate power, raising questions over what drives corporate decision-making values and priorities. The Varieties of Capitalism literature has proven to be useful in analyzing national divergences in corporate governance practices, institutional frameworks and legal systems and how these factors interplay to create coherent systems of political economy. Against the backdrop of this framework 'Law, Corporate Governance and Partnerships at Work' embarks on an examination of the complex intersection of legal and institutional factors within the Australian national context which give rise to ‘Partnerships at Work’ defined as the 'situations in which business organizations are seen to work closely and cooperatively with their employees'. The implications of this research, namely that corporate managers in a liberal market context can work in partnership with their employees and still operate their firms productively and competitively in the face of capital market pressures challenges our current understanding of shareholder primacy theory as an accurate reflection of how managers run their firms and merits its inclusion into any serious inquiry on the trajectory of corporate governance in the post-crisis context.
Keywords: comparative capitalisms, shareholder primacy, corporate governance, labour orientation
JEL Classification: L20
Suggested Citation: Suggested Citation