Beyond Shareholders and Stakeholders: A Phronetic Fiduciary Theory of Managerial Responsibility
The familiar debate between shareholder theory and stakeholder theory is usually framed as a dispute about whose interests corporate managers ought to advance. Shareholder theorists give priority to the economic interests of the corporation’s owners, while stakeholder theorists argue that managers must consider a wider range of constituencies, including employees, customers, suppliers, creditors, and communities….