A Middle Way to Good Corporate Governance

Corporate partner Doug Raymond authored an article for Directors & Boards titled “A Middle Way to Good Corporate Governance” that addresses whether business corporations should pursue shareholder wealth maximization or broader societal interests beyond shareholder returns.

Raymond shares Delaware Supreme Court Chief Justice Leo Strine’s suggested framework for good corporate citizenship while retaining the primacy of the stockholder, which focuses on what he sees as the “most heated part of the debate…the intersection of corporate power and voice and controversial issues of general social and political polity.”

Raymond outlines Strine’s approach, which seeks to thread a middle path and encourage boards to expand beyond a wholly internal focus. He adds that Strine’s model provides a useful proposal that will likely trigger further thoughtful discussion and guide boards as they navigate these difficult issues.