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Lucian Bebchuk, Kobi Castiel & Roberto Tallarita, For Whom Corporate Leaders Bargained: What the Past Can Teach Us About the Questionable Promise of Implementing Stakeholder Capitalism Today, ProMarket (Sep. 15, 2020).


Abstract: The debate about stakeholder capitalism should seek to learn from our experience with constituency statutes, which authorized corporate leaders to take into account stakeholder interests in considering a sale of the company. We document how, over the past two decades, these statutes utterly failed to produce the hoped-for stakeholder benefits: Corporate leaders used their bargaining power to secure benefits for shareholders, executives, and directors, but made little use of it to obtain protections for stakeholders.