ABSTRACT
This book considers the duties of directors of public companies in the light of the ‘stakeholder’ approach to the firm. It examines the theory that directors are not simply agents of corporate shareholders, but have a duty to consider and, where appropriate, to balance the interests of several constituencies, each of which has a legitimate ‘stake’ in the company, its activities and development. Examples of suggested stakeholders in corporate activity have included employees, customers, suppliers and creditors, as well as the local community and the natural environment. The categories of stakeholders and the debate around their claims will be discussed in Chapter 4. The essential point to make here is that, if this broader view of public company responsibility is warranted, the role of the law in securing a ‘stakeholder’ style of management in UK public companies needs to be examined with care. It will be argued that the implications for industry and commerce, and for Britain’s national competitiveness and prosperity, could be very great.
