Georgia Law Review, Vol. 20, No. 3 (Spring 1986), pp. 565-625

Abstract

In recent years there has been a well-publicized movement to induce corporations to use their economic wealth and power to achieve "social-reform," rather than carry on as usual by professing to be guided only by profit-making. Social change is sought by allowing shareholders to make, or influence directly, those management decisions which significantly affect the quality of life in this country. This approach has found support on college campuses and among the commentators in this field. The Securities Exchange Commission and the courts also have endorsed this approach by legitimating such a role for shareholders despite the fact that it is contrary to one of the most fundamental rules underlying the law of corporate governance in this country.

Share

COinS