Instruction
Write a 3-4 page paper (double-spaced) comparing and contrasting the benefits and detriments of a company adopting either shareholder primacy or stakeholder theory as its corporate governance paradigm. In writing this paper, you will find it useful to rely not only on the required and recommended readings for this module, but also readings from earlier in the course, such as the Freeman reading in module 2. Include sections in your paper that address the following issues:
The legal foundation and expectations for both approaches
Ethical concerns raised by each approach
Practical problems and benefits of each approach
Whether there is a way to harmonize or synthesize the two approaches into a single coherent view of corporate purpose, and if so, the benefits and perils of harmonizing the two approaches.
links:
Required Readings
Business Law: Text and Cases, the First Course, 14th ed., Chapters 29, 30, 31, and 32 (pages 545-618).
Friedman, F. (Sept. 13, 1970). The social responsibility of business is to increase its profits. (Links to an external site.)The New York Times Magazine, http://umich.edu/~thecore/doc/Friedman.pdf)
Ferrero, I., Hoffman, M.W., & McNulty, R.E. (2014). Must Milton Friedman embrace stakeholder theory. (Links to an external site.)Business and Society Review, 119(1), pp. 37-59, retrieved from: https://onlinelibrary.wiley.com/doi/full/10.1111/basr.12024.
Berger-Walliser, G. & Scott, I. (2018). Redefining corporate social responsibility in an era of globalization and regulatory hardening. (Links to an external site.)American Business Law Journal, 55(1), pp. 167-218, https://onlinelibrary.wiley.com/doi/epdf/10.1111/ablj.12119.
Required Resources
Business structure basics. (Links to an external site.)(n.d.) Entrepreneur, retrieved from https://www.entrepreneur.com/article/75118
Principles of corporate governance. (Links to an external site.)(Sept. 8, 2016). Harvard Law School Forum on Corporate Governance and Financial Regulation, retrieved from: https://corpgov.law.harvard.edu/2016/09/08/principles-of-corporate-governance/
Jaffe, M.D., Rodgers, G., & Gutierrez, H. (July 5, 2018). “Spotify Case Study: Structuring and Executing a Direct Listing.” (Links to an external site.)Harvard Law School Forum on Corporate Governance and Financial Regulation, retrieved from: https://corpgov.law.harvard.edu/2018/07/05/spotify-case-study-structuring-and-executing-a-direct-listing/
Recommended Readings
Ramseyer, J.M., Ed. (2009) Corporate Law Stories, New York City, NY: Foundation Press.