fbpx Will Corporations Deliver Value to All Stakeholders? - Lucian Bebchuk | Harvard Kennedy School

Additional Authors:

  • Lucian Bebchuk

Excerpt

June 2022, Paper: "In August 2019, in the Business Roundtable’s Statement on the Purpose of a Corporation (the “BRT Statement”), numerous major company CEOs announced their commitment to deliver value to all stakeholders and not just shareholders. Some observers viewed this event as a milestone and the Statement as reflecting a meaningful commitment to improve the treatment of stakeholders (the “Commitment Hypothesis”). Others, by contrast, including us in previous work, viewed the Statement as a PR move with little practical impact on stakeholders (the “PR Hypothesis”). Which hypothesis best explains the BRT Statement?"

Non-HKS Faculty Author Website - Lucian Bebchuk