Beyond Shareholder Value: Normative Standards for Sustainable Corporate Governance

This Article explores whether the modern corporate governance model is sustainable. For many corporations, particularly large ones, there is a separation between ownership and management, with a management emphasis on short-term gains at the expense of long-term sustainability. This Article explores the role of corporate directors, particularly vis-a-vis shareholders, from an interdisciplinary perspective, analyzing legal case law as well as legal, management, and finance literature. This Article explores emerging trends in expanding notions of corporate governance that incorporate concerns beyond just shareholders, recognizing the interrelationship between business and society.

It is suggested that in order to remain viable and competitive, corporations need to normalize longer views of sustainability which encompass numerous stakeholders, rather than simply trying to maximize profits during a current quarter.