The widely held notion that public companies should make decisions based exclusively on shareholder interests is absurd, according to economist Lenore Palladino. She argues that corporations exist by “public permission” and that employees, customers and citizens deserve a say in corporate governance. Her thought-provoking essay does a good job of putting forward these ideas, though she offers few details on how some companies put them into practice. Nonetheless, getAbstract recommends this astute article to CEOs and corporate executives.
In this summary, you will learn
- Why the idea of shareholder supremacy in corporate governance is flawed,
- What changes in governance will help corporations pursue a public purpose and
- What types of corporations are embracing “the stakeholder model of governance.”
About the Author
Lenore Palladino is a senior economist at the Roosevelt Institute