BUS 223 Lecture Notes - Lecture 3: Fiduciary, Corporate Law, Fundamental Attribution Error
Document Summary
The lack of authority for dodge v fords positive vision of corporate purpose: shareholder wealth maximization is not a modern legal principle, corporate law can be broken down in to 3 rough categories. Internal (requirements set out in individual corporations" charters and bylaws: typical corporate charter defines corporate purpose as anything. Shlensky v wrigley : highlights that judges routinely refuse to impose any legal obligation on corporate directors to maximize shareholder wealth, rare for cases tried to come to the same doug v ford consensus. The social responsibility of busines is to increase its profits: Corporate executive/businessmen acting in their own right are the social responsibilities of individuals, not businesses. To say a corporate executive has a social responsibility in his capacity as businessman is to say he must act at the expense of corporate profits, for a general social interest.
