JUST BECAUSE A GROUP OF CEOS SAID THAT THE INTERESTS OF OTHER “STAKEHOLDERS” SHOULD BE CONSIDERED IN CORPORATE DECISIONS DOESN’T MEAN THAT'S THE LAW
As Professor Bainbridge points out once again, the law is not what the CEOs say, or think it should be. Shareholder wealth maximization is the law. CEOs who act otherwise are endangering their own employment and the survival of their companies.
I readily concede that corporate social responsibility has its place, but only when it is consistent with the corporation’s duty to maximize the return on its shareholders’ investment.
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