Taking stakeholder interests seriously: A practitioner’s view from Germany on management duties

Christoph H. Seibt

Chapter 1 in Research Handbook on Environmental, Social and Corporate Governance, 2024, pp 22-45 from Edward Elgar Publishing

Abstract: This chapters shows that in German corporate law, executive boards and supervisory boards do take stakeholder interests other than shareholder interests into account when setting up the company’s corporate strategy or deciding on specific management actions. However, these stakeholder interests are, as a general rule, considered as significant parameters for the economical assessment whether the corporate strategy or management action in question supports the long-term viability and profitability of the company and is in the long-term interest of the shareholders as the company’s residual owners. The chapter offers ten case studies to support its claims, relating to the development of corporate strategy and strategic reviews, specific management actions, in particular investment decisions and choice of value chain partners, and takeover bid cases. It then explains how stakeholder interests become part of the corporate decision-making process on several levels.

Keywords: Economics and Finance; Environment; Law - Academic; Politics and Public Policy (search for similar items in EconPapers)
Date: 2024
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