The Future of the Corporation: the avenues for legal change

Abstract: This article aims at analysing what could be the legal avenues to frame the future of the corporation. It focuses on fulfilling the Purpose and Do No Harm Objectives. The Purpose Objective should re-connect directors, shareholders and stakeholders in order to ensure that businesses rediscover their original function to serve the needs of society. To meet this goal, the article proposes changes in the laws regulating corporate governance. The future company could adopt a pluralistic approach, considering stakeholders fundamental actors, along shareholders and the board, in its corporate governance. The Do No Harm Objective should ensure that businesses are accountable when they damage the stakeholders affected by their activities. In order to meet this goal, the article proposes the introduction of enforcement mechanisms that would allow stakeholders to effectively enforce their rights.

Keywords: Corporation, purpose, harm, director’s duties, shareholders, stakeholders, enforcement, control, accountability.

Article posted to Journal of the British Academy, volume 10, supplementary issue 5 (Foundations of the Future of the Corporation programme report ‘Policy & Practice for Purposeful Business’).