Fiduciary Duties and the Shareholder-Management Relation

Business Ethics Quarterly 4 (4):393-407 (1994)
The claim that managers have a fiduciary duty to shareholders to run the corporation in their interests is generally supported by two arguments: that shareholders are owners of a corporation and that they have a contract or agency relation with management. The latter argument is used by Kenneth E. Goodpaster, who rejects a multi-fiduciary, stakeholder approach on the grounds that the shareholder-management relation is “ethically different” because of its fiduciary character. Both of these arguments provide an inadequate basis for the fiduciary duties of officers and directors of corporations. The basis is to be found, rather, in considerations of public policy, a point that was established in the Dodd-Berle exchange of the 1930s. This conclusion also shows the inadequacy of Goodpaster’s solution to the so-called stakeholder paradox, and an alternative solution to the paradox is presented
Keywords No keywords specified (fix it)
Categories (categorize this paper)
DOI 10.2307/3857339
 Save to my reading list
Follow the author(s)
My bibliography
Export citation
Find it on Scholar
Edit this record
Mark as duplicate
Revision history Request removal from index
Download options
PhilPapers Archive

Upload a copy of this paper     Check publisher's policy on self-archival     Papers currently archived: 15,879
External links
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
Through your library
References found in this work BETA

No references found.

Add more references

Citations of this work BETA
Yves Fassin (2009). The Stakeholder Model Refined. Journal of Business Ethics 84 (1):113 - 135.

View all 14 citations / Add more citations

Similar books and articles
Andrew Wicks (1999). Getting Real. Business Ethics Quarterly 9 (2):273-293.
George R. Gay (2003). Fiduciary Duty and Socially Responsible Investing. Philosophy in the Contemporary World 10 (1):49-54.
Ian Maitland (1994). The Morality of the Corporation. Business Ethics Quarterly 4 (4):445-458.
Peter Koslowski (2000). The Limits of Shareholder Value. Journal of Business Ethics 27 (1-2):137 - 148.

Monthly downloads

Added to index


Total downloads

25 ( #118,948 of 1,725,189 )

Recent downloads (6 months)

7 ( #93,181 of 1,725,189 )

How can I increase my downloads?

My notes
Sign in to use this feature

Start a new thread
There  are no threads in this forum
Nothing in this forum yet.