Executives, investors, and the business press routinely chant the mantra that corporations are required to “maximize shareholder value.” In her pathbreaking book, “The Shareholder Myth”, renowned corporate expert Lynn Stout, professor of Law at the prestigious Cornell University, debunks the myth that corporate law mandates shareholder primacy.
Stout shows how shareholder value thinking endangers not only investors but the rest of us as well, leading managers to focus myopically on short-term earnings hereby:
– discouraging investment and innovation;
– harming employees, customers, and communities and;
– causing companies to indulge in reckless and irresponsible behaviors.
Most importantly she looks at new models of corporate purpose that better serve the needs of investors, corporations, and society.
On 12/12 we will have the pleasure to debate these ideas in Brussels with Lynn Stout herself. She will be accompanied for the debate by Sabine Denis, responsible for the think tank Business & Society, who will publish early 2014 a new book in French addressing the subject (« de la RSE à l’ESE: l’engagement sociétal des entreprises »).
If you live too far away from Brussels or can’t make it that evening, watch Lynn Stout on youtube.
Description en Français
Vivons-nous la fin du mythe de la valeur actionnariale ? A quelles erreurs ce mythe a-t-il mené ?
Lynn Stout nous aidera à mieux le comprendre. Elle analysera aussi les attentes des actionnaires qui d’après elles sont diverses et donnent aux dirigeants une certaine latitude dans leurs choix et la défense d’intérêts de parties tierces.
L’articulation de cette marge de manœuvre des dirigeants peut-elle s’enrichir au moyen du « pacte » proposé par Daniel Hurstel.
Le professeur Lynn Stout de la Law School de Cornell University a écrit entre autres « The Shareholder Value Myth: How Putting Shareholders First Harms Investors, Corporations and the Public ».
Program of the cycle 2013 – 2014
Given the importance of the debate and the exceptional presence of Lynn Stout in Belgium, we have decided to make this a “pay what you want event” so that price should not be a barrier for anyone to participate. Registration is compulsory to participate but you’ll decide afterwards what you think fair to pay given what you’ll have learned, in order to help us recover our costs (catering, travel, administrative costs,…).
Review of The Shareholder Value Myth