Corporate Personhood and Fiduciary Duties as Critical Constructs in Developing Stakeholder Management Theory and Corporate Purpose

Joseph T. Mahoney ()
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Joseph T. Mahoney: Caterpillar Chair of Business, Gies College of Business, University of Illinois at Urbana-Champaign, Champaign, Illinois 61820

Strategy Science, 2023, vol. 8, issue 2, 212-220

Abstract: This article considers the complex process of economic value creation in joint production in which a corporation is viewed as more than a nexus of contracts for four reasons related to the interdependent functions of the corporate personhood concept of the corporation as a separate legal entity. Corporate personhood facilitates stewardship and stakeholder management, which can encourage firm-specific investments, reduce shirking, and attenuate rent seeking to provide economic value. The corporate personhood approach illuminates multidimensional constructs for the governance of a corporation at the board level to embody fiduciary duties and corporate purpose, which is much richer than the nexus of contract view.

Keywords: corporate personhood; fiduciary duties; stakeholder management; corporate purpose; joint value creation; governance; institutional logics (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:inm:orstsc:v:8:y:2023:i:2:p:212-220

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