The responsible stakeholder model: An alternative theory of corporate law
Authors Nojeem Amodu
Affiliations: Faculty of Law, University of Lagos
Source: Journal of Comparative Law in Africa, Volume 5 Issue 1, p. 1 – 36
The debate on corporate objective is open ended. While some scholars argue it is already ‘end of history’ with the shareholder primacy theory, others contend that the future lies with the stakeholder-oriented progressive models of corporate law. This article contributes to this debate using the backdrop of corporate social responsibility (CSR). It synthesises a few corporate law theoretical approaches and develops an alternative model called the responsible stakeholder model (RSM). The author argues that corporate objectives can be better understood within the framework of the RSM and that corporate actions (including CSR activities) are better measured using the assumptions of the RSM. The article touts RSM as an effective policy response to stakeholder rights abuses and incidences of ‘greenwashing’.