Comparison of the Stakeholder- and Shareholder-oriented approaches to Company Law

Authors

• Elina Kuosmanen

Keywords:

company law, corporate social responsibility, sustainable development, shareholder, stakeholder

Abstract

This article explores whether a stakeholder-oriented approach to Company Law would be a more efficient way to implement Corporate Social Responsibility (CSR) than the traditional shareholder-oriented approach. The article also discusses the problems which are related to the adaptation of stakeholder-oriented theories. These include for example the lack of widely acknowledged definitions for relevant stakeholder groups, risk of management-opportunism and conflicting stakeholder interests. Other options for implementing Corporate Social Responsibility are considered as well, such as the methods for implementing CSR within the shareholder-oriented framework or the possibility of a wider law reform.