Broadening the Board's Mandate: From Shareholders to Stakeholders
Most of the major corporate governance initiatives in the 1990s had a singular aim: to create boards that were more responsive to shareholders. As a result, boards increasingly focused on shareholder value and shareholders prospered. But this perspective is too narrow for the 21st century. The decisions and actions of a board must be judged on criteria that go beyond financial performance to include their impact on employees, suppliers, customers, and communities. These stakeholders, after all, are investors of one kind or another in the success of a company.
The adoption of a stakeholder perspective is consistent with important trends that are unfolding in the global business ...
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