What kind of debate finds Andrew Behar, CEO of As You Sow, the US shareholder advocate, and Marty Lipton, founding partner of Wachtell Lipton, the corporate law firm, on the same side; and the US Council of Institutional Investors (CII) and Lucian Bebchuk, Harvard Law School professor on the other?
Yes, it’s the debate over the rather awkward neologism: ‘stakeholderism’.
Since the Business Roundtable (BRT) in the US published its new Purpose of a Corporation statement in August last year, there has been continuous debate about its merits.
Indeed, just yesterday Bebchuk debated Oxford University professor, Colin Mayer, on the issue. Mayer supports the stakeholder capitalist ‘New Purpose’, Bebchuk is against.
The BRT statement inspired a series of shareholder resolutions on whether companies led by signatory CEOs had actually implemented the New Purpose or just signed on because it made them look good.
In fact, Jamie Dimon, the chairman of the…