No Need for Asia to be Woke: Contextualizing Anglo-America’s 'Discovery' of Corporate Purpose

20 Pages Posted: 16 Jun 2022 Last revised: 6 Sep 2022

See all articles by Dan W. Puchniak

Dan W. Puchniak

Yong Pung How School of Law, Singapore Management University; ECGI

Date Written: May 29, 2022


Viewed through an Anglo-American lens, corporate governance around the world is living a woke moment. Anglo-America’s recent “discovery” that corporations have stakeholders (other than shareholders) and purposes (other than maximizing shareholder value) is hailed as a corporate governance solution that can deliver global prosperity. However, this article demonstrates that long before Anglo-America’s “discovery” of corporate purpose, Asia was already awake to it. It describes how Asia’s most important and dynamic economies – which are the world’s engine for economic growth – have been built on systems of corporate governance where corporate purpose and stakeholderism reign supreme.

This positive claim has important normative implications. The Anglo-American movement to push corporations around the world to be more purposeful is likely to have deleterious effects in Asia where corporations already tend to have too many purposes. Under the guise of embracing the Anglo-American corporate purpose movement, entrenched stakeholders may resist reforms to reduce rent seeking, wealth tunnelling, and protect (minority) shareholder interests.

A proper understanding of the history of corporate purpose in Asia demonstrates that different jurisdictions have different understandings of the purpose that corporations should serve and that there is no one model that fits all. At any given time, each jurisdiction will be at a different point along the shareholder-primacy/stakeholderism continuum. How this is achieved will vary from jurisdiction to jurisdiction and within each jurisdiction over time. Ultimately, prosperity requires diversity.

Keywords: Corporate purpose, shareholder primacy, Friedman doctrine, stakeholders, comparative corporate law, Asian law, Anglo-American, prosperity, diversity

JEL Classification: K22

Suggested Citation

Puchniak, Dan W., No Need for Asia to be Woke: Contextualizing Anglo-America’s 'Discovery' of Corporate Purpose (May 29, 2022). European Corporate Governance Institute - Law Working Paper No. 646/2022; Revue européenne du droit, Paris: Groupe d’études géopolitiques, Summer 2022, Issue n°4, 14-21. , Singapore Management University School of Law Research Paper, Available at SSRN: or

Dan W. Puchniak (Contact Author)

Yong Pung How School of Law, Singapore Management University ( email )

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