Do shareholders have obligations to stakeholders?

Journal of Business Ethics 33 (4):287 - 297 (2001)
Abstract
The question of whether, and to what extent, business managers have obligations to stakeholders has been the principal theme in much of recent business ethics literature. The question of whether shareholders have obligations to stakeholders, however, has not been addressed sufficiently. I provide some needed attention to this matter by examining the positions of shareholders in the contemporary world of investing. Their positions are considerably different than that often envisioned by business ethicists and economists where shareholders determine the directions of corporate activities through their voting decisions. Typical contemporary investors rarely control corporate activities. If they own corporate securities directly, generally they own too small an interest to exercise control. And, in most cases, they do not even own corporate securities directly, but, rather, own shares in funds. Because of the positions of shareholders today, it is highly questionable whether most have obligations to stakeholders. This has a significant implication for business managers. Whether or not shareholders have obligations to stakeholders, business managers have a greater obligation to educate shareholders about how corporate activities affect stakeholders. I provide a justification for that obligation and comment on how business managers might begin to fulfill it.
Keywords business managers  contemporary investing  corporate securities  culpable ignorance  direct model  fairness  free-riding  obligations  shareholders  stakeholders
Categories (categorize this paper)
DOI 10.2307/25074611
Options
 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
Our Archive


Upload a copy of this paper     Check publisher's policy     Papers currently archived: 27,204
Through your library
References found in this work BETA

No references found.

Add more references

Citations of this work BETA
Ethical Investing From a Jewish Perspective.Mark S. Schwartz, Meir Tamari & Daniel Schwab - 2007 - Business and Society Review 112 (1):137-161.

Add more citations

Similar books and articles

Monthly downloads

Added to index

2009-01-28

Total downloads

13 ( #351,747 of 2,164,249 )

Recent downloads (6 months)

1 ( #348,039 of 2,164,249 )

How can I increase my downloads?

My notes
Sign in to use this feature


Discussion
Order:
There  are no threads in this forum
Nothing in this forum yet.

Other forums