Stakeholders Matter By Definition In Corporate Governance

Law360 (September 10, 2019, 4:07 PM EDT) -- Many pundits would have us believe that the world shook in August when the Business Roundtable, a trade association of leading CEOs, issued a new statement on the purpose of a corporation. The Business Roundtable is ostensibly moving away from shareholder primacy to a seemingly less profit-driven paradigm of stakeholder corporate governance, in which companies also commit to delivering value to customers, employees, suppliers and the communities in which they operate.

As chairman of the Business Roundtable, JPMorgan Chase CEO Jamie Dimon and his fellow CEOs say it’s necessary to modernize the Business Roundtable's principles on the proper role of big business...

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