ABSTRACT
This chapter briefly outlines one consequence of the sea change of equity ownership that has occurred in common-law countries in the last 30 years: the growth of the large, highly diversified and professionally managed institutional owner. It explores some of the profound consequences of these developments as they intersect with growing global concerns about sustainable economic growth and development. The chapter focuses on how negative and positive externalities are managed and accounted for, and how, more generally, institutional owners manage and account for political, reputational and market risk. It outlines the rise of fiduciary capitalism and describes how fiduciary duties are defined and exercised. The chapter briefly examines sustainable development in general, and concludes with a discussion of how universal ownership and an expanded and deepened vision of fiduciary duty intersect: how this relates to past and current developments in corporate governance is also discussed.
