How to Develop 'Credible Commitment' to Corporate Stakeholders

 Lisa Fairfax, Presidential Professor at the University of Pennsylvania Carey Law School and co-director of the Institute for Law & Economics, shares her thoughts on the push-and-pull that surrounds the concept of stakeholderism—how it counterbalances the notion that businesses are purely meant to make a profit, why its support seems to wax and wane, and why corporations really are part of the solution of society’s biggest challenges.

• What is the difference between shareholder capitalism and stakeholderism?
• Why does the support for stakeholderism among business leaders ebb and flow?
• What are some of the most impactful examples of ‘credible commitment’ to stakeholderism?
• How supporting stakeholders and seeking profit are not mutually exclusive

To read Lisa’s article, “Stakeholderism, Corporate Purpose, and Credible Commitment,” please visit virginialawreview.org. And to get a copy of her book Shareholder Democracy: A Primer on Shareholder Activism and Participation, please visit Carolina Academic Press at cap-press.com.

Lisa will be a keynote speaker at the 2023 ESG Virtual Forum, held on September 26-27. To register for that event, please visit ethisphere.com/global-events. Members of the Business Ethics Leadership Alliance can get up to five free passes to the ESG Virtual Forum, so please contact your engagement director to learn more.