Counters shareholder primacy by arguing that businesses owe a structural fiduciary duty to multiple parties. Neglecting non-shareholding groups systematically ruins long-term corporate viability, exposing the firm to severe reputational collapse and operational damage.
- Pluralistic Fiduciary Duties: Establishes that boards and executive management teams owe an uncompromised structural duty to multiple constituencies simultaneously, balancing competing claims through transparent governance.
- Long-Term Viability Preservation: Asserts that systematic neglect of non-shareholder groups (such as exploiting labor or destroying local ecosystems) erodes the social license to operate, paving the way for corporate collapse.
- Externalities Internalization: Forces the enterprise to account for and mitigate the hidden environmental, economic, and social costs it imposes on wider society during standard operations.
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