From Primacy to Commitment: Revising corporate governance theories to account for recent legal innovations in the US
International audience For more than twenty years now, Corporate Governance scholars have hesitated between shareholder, director and stakeholder primacy, making the purpose of the corporation " the most important issue in corporate law ". In this paper, we conduct an extensive review of t...
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ftanrparis:oai:HAL:hal-01777788v1 2024-05-19T07:42:49+00:00 From Primacy to Commitment: Revising corporate governance theories to account for recent legal innovations in the US Levillain, Kevin Segrestin, Blanche Centre de Gestion Scientifique i3 (CGS i3) Mines Paris - PSL (École nationale supérieure des mines de Paris) Université Paris Sciences et Lettres (PSL)-Université Paris Sciences et Lettres (PSL)-Institut interdisciplinaire de l’innovation (I3) Centre National de la Recherche Scientifique (CNRS)-Centre National de la Recherche Scientifique (CNRS) ANR-16-CE26-0016,PURPOSE,Emergence, conditions et gestion des entreprises à mission(2016) Reykjavik, Iceland 2018-06 https://hal.science/hal-01777788 https://hal.science/hal-01777788/document https://hal.science/hal-01777788/file/Levillain%20et%20al.%20EURAM%202018%20-%20From%20Primacy%20to%20Commitment.pdf en eng HAL CCSD hal-01777788 https://hal.science/hal-01777788 https://hal.science/hal-01777788/document https://hal.science/hal-01777788/file/Levillain%20et%20al.%20EURAM%202018%20-%20From%20Primacy%20to%20Commitment.pdf info:eu-repo/semantics/OpenAccess EURAM https://hal.science/hal-01777788 EURAM, Jun 2018, Reykjavik, Iceland [SHS.GESTION]Humanities and Social Sciences/Business administration info:eu-repo/semantics/conferenceObject Conference papers 2018 ftanrparis 2024-04-23T03:18:41Z International audience For more than twenty years now, Corporate Governance scholars have hesitated between shareholder, director and stakeholder primacy, making the purpose of the corporation " the most important issue in corporate law ". In this paper, we conduct an extensive review of the arguments supporting either of these views in the US context, which shows that analyzing corporate governance through the lens of " primacy " inevitably leads to inconsistent and contradictory interpretations. In the current exploration of new business practices to deal with urgent societal challenges, this misinterpretation undermines the search for conditions to temper the dominant " shareholder value maximization " norm without jeopardizing control and efficiency. Instead we show that interpreting recent US legal innovation requires to drop the concept of " primacy " and to view corporate law as enabling a variety of distribution of decision rights between shareholders and directors. In this light, our model shows that if one is to foster companies' responsible behaviors, it appears necessary to secure both shareholders' and directors' commitment towards a broader purpose. This " commitment " model opens avenues for designing new effective governance practices, including the recent " Benefit Corporation " forms. Conference Object Iceland Portail HAL-ANR (Agence Nationale de la Recherche) |
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[SHS.GESTION]Humanities and Social Sciences/Business administration |
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[SHS.GESTION]Humanities and Social Sciences/Business administration Levillain, Kevin Segrestin, Blanche From Primacy to Commitment: Revising corporate governance theories to account for recent legal innovations in the US |
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[SHS.GESTION]Humanities and Social Sciences/Business administration |
description |
International audience For more than twenty years now, Corporate Governance scholars have hesitated between shareholder, director and stakeholder primacy, making the purpose of the corporation " the most important issue in corporate law ". In this paper, we conduct an extensive review of the arguments supporting either of these views in the US context, which shows that analyzing corporate governance through the lens of " primacy " inevitably leads to inconsistent and contradictory interpretations. In the current exploration of new business practices to deal with urgent societal challenges, this misinterpretation undermines the search for conditions to temper the dominant " shareholder value maximization " norm without jeopardizing control and efficiency. Instead we show that interpreting recent US legal innovation requires to drop the concept of " primacy " and to view corporate law as enabling a variety of distribution of decision rights between shareholders and directors. In this light, our model shows that if one is to foster companies' responsible behaviors, it appears necessary to secure both shareholders' and directors' commitment towards a broader purpose. This " commitment " model opens avenues for designing new effective governance practices, including the recent " Benefit Corporation " forms. |
author2 |
Centre de Gestion Scientifique i3 (CGS i3) Mines Paris - PSL (École nationale supérieure des mines de Paris) Université Paris Sciences et Lettres (PSL)-Université Paris Sciences et Lettres (PSL)-Institut interdisciplinaire de l’innovation (I3) Centre National de la Recherche Scientifique (CNRS)-Centre National de la Recherche Scientifique (CNRS) ANR-16-CE26-0016,PURPOSE,Emergence, conditions et gestion des entreprises à mission(2016) |
format |
Conference Object |
author |
Levillain, Kevin Segrestin, Blanche |
author_facet |
Levillain, Kevin Segrestin, Blanche |
author_sort |
Levillain, Kevin |
title |
From Primacy to Commitment: Revising corporate governance theories to account for recent legal innovations in the US |
title_short |
From Primacy to Commitment: Revising corporate governance theories to account for recent legal innovations in the US |
title_full |
From Primacy to Commitment: Revising corporate governance theories to account for recent legal innovations in the US |
title_fullStr |
From Primacy to Commitment: Revising corporate governance theories to account for recent legal innovations in the US |
title_full_unstemmed |
From Primacy to Commitment: Revising corporate governance theories to account for recent legal innovations in the US |
title_sort |
from primacy to commitment: revising corporate governance theories to account for recent legal innovations in the us |
publisher |
HAL CCSD |
publishDate |
2018 |
url |
https://hal.science/hal-01777788 https://hal.science/hal-01777788/document https://hal.science/hal-01777788/file/Levillain%20et%20al.%20EURAM%202018%20-%20From%20Primacy%20to%20Commitment.pdf |
op_coverage |
Reykjavik, Iceland |
genre |
Iceland |
genre_facet |
Iceland |
op_source |
EURAM https://hal.science/hal-01777788 EURAM, Jun 2018, Reykjavik, Iceland |
op_relation |
hal-01777788 https://hal.science/hal-01777788 https://hal.science/hal-01777788/document https://hal.science/hal-01777788/file/Levillain%20et%20al.%20EURAM%202018%20-%20From%20Primacy%20to%20Commitment.pdf |
op_rights |
info:eu-repo/semantics/OpenAccess |
_version_ |
1799482517755002880 |