Post by arfanho7 on Feb 27, 2024 2:29:37 GMT -6
We conclude with some preliminary research results ideas for future research and next steps. Paper Information Full Working Paper Text pdf Working Paper Publication Date September HBS Working Paper Number Faculty Unit s General Management The Real Duty of the Board of Directors by Robert G. Eccles and Tim Youmans Robert G. Eccles and Tim Youmans argue that a board s primary duty is not to the shareholders but to the corporation itself.
We routinely hear board directors CEOs and CFOs of publicly listed corporations refer to shareholders as owners of the corporation. Under this thinking it is natural to conclude that the board’s duty is to its shareholders. Contrary to this popular belief Hungary Phone Number however a board’s real duty is to the interests of the corporation itself. As one of us responded in a recent interview with John Authers of the Financial Times “The shareholders don’t actually own the corporation. They own shares in the corporation.
The corporation owns itself.” Clarifying this common misunderstanding about the ownership of modern corporations is a central point of our new paper Materiality in Corporate Governance The Statement of Significant Audiences and Materiality. public disclosures we argue that the board should publish an annual statement in which it identifies the significant audiences for the corporation’s vitality and long term success. This clearly includes shareholders but it could include other stakeholders such as employees. This is simply about transparency in the purpose the board sees for the corporation.
We routinely hear board directors CEOs and CFOs of publicly listed corporations refer to shareholders as owners of the corporation. Under this thinking it is natural to conclude that the board’s duty is to its shareholders. Contrary to this popular belief Hungary Phone Number however a board’s real duty is to the interests of the corporation itself. As one of us responded in a recent interview with John Authers of the Financial Times “The shareholders don’t actually own the corporation. They own shares in the corporation.
The corporation owns itself.” Clarifying this common misunderstanding about the ownership of modern corporations is a central point of our new paper Materiality in Corporate Governance The Statement of Significant Audiences and Materiality. public disclosures we argue that the board should publish an annual statement in which it identifies the significant audiences for the corporation’s vitality and long term success. This clearly includes shareholders but it could include other stakeholders such as employees. This is simply about transparency in the purpose the board sees for the corporation.
