PHI 2397 Lecture Notes - Lecture 6: Invisible Hand, Fiduciary, Space Shuttle Columbia Disaster
7 Feb 2018
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Text: freeman, a stakeholder theory of the modern corporation , pp. Managers have a special relationship with the stockholders of a firm. Stock holders own shares in the firm, they have certain privileges and rights that must be granted to them by the management. Then there is the sanctions in the form of the law of corporations . Cannot look at the firm in terms of just for making the maximum profits. The author is trying to revamp the concept of managerial capitalism by replacing the notion that managers have a duty to stock holders with managers have a duty to stakeholder"s (those who have steak or claim in the firm). The attack on managerial capitalism: basic idea of managerial capitalism: in return for controlling the firm, management pursues the interests of the stock holders. They each have a claim in this company.
