The age-old debate over the purpose of for-profit corporations has reignited, with two rival theories on offer: shareholder primacy and stakeholder parity. The first posits that the primary purpose of corporations is to maximize shareholder value, while the second urges the equal interests of all other constituents, especially employees, customers, and communities.

See the complete text on Harvard Law School’s Forum on Corporate Governance.

Also see the Across The Board piece, The Directors’ Role Amid Debates over Corporate Purpose, Stakeholders and ESG.