Interpreting Nonshareholder Constituency Statutes

Stephen M. Bainbridge
2002 Social Science Research Network  
Every couple of decades the corporate social responsibility debate heats up again.' While it is almost as old as the corporate form itself, the debate took its modem form in the 1930s in an exchange between Professors Adolf Berle and Merrick Dodd.2 Berle showed that ownership and control had separated in the modern publicly-held corporation. 3 As he demonstrated, in most public corporations no one shareholder or group of shareholders owns enough stock to control the firm. 4 Rather, such a firm
more » ... s effectively controlled by the manag-* Associate Professor, University of Illinois College of Law.
doi:10.2139/ssrn.310261 fatcat:ra7ucb6k6betxddhdfpussebf4