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 Applied Philosophy  Business and Professional Ethics  Social Science
Categories (categorize this paper)
ISBN(s) 1052-150X
DOI 10.2307/3857339
Edit this record
Mark as duplicate
Export citation
Find it on Scholar
Request removal from index
Revision history

Download options

PhilArchive copy

Upload a copy of this paper     Check publisher's policy     Papers currently archived: 59,968
Through your library

References found in this work BETA

No references found.

Add more references

Citations of this work BETA

Stakeholder Theory: A Libertarian Defense.R. Edward Freeman & Robert A. Phillips - 2002 - Business Ethics Quarterly 12 (3):331-350.
The Stakeholder Model Refined.Yves Fassin - 2009 - Journal of Business Ethics 84 (1):113-135.
Feminist Ethics as Moral Grounding for Stakeholder Theory.Craig P. Dunn - 1996 - Business Ethics Quarterly 6 (2):133-147.

View all 48 citations / Add more citations

Similar books and articles

A Fiduciary Argument Against Stakeholder Theory.Alexei M. Marcoux - 2003 - Business Ethics Quarterly 13 (1):1-24.
Fiduciary Duty and Socially Responsible Investing.George R. Gay - 2003 - Philosophy in the Contemporary World 10 (1):49-54.
Business Ethics and Stakeholder Analysis.Kenneth E. Goodpaster - 1991 - Business Ethics Quarterly 1 (1):53-73.
The Limits of Shareholder Value.Peter Koslowski - 2000 - Journal of Business Ethics 27 (1-2):137 - 148.


Added to PP index

Total views
104 ( #99,663 of 2,433,421 )

Recent downloads (6 months)
4 ( #172,561 of 2,433,421 )

How can I increase my downloads?


My notes