As Donald Trump nears his second presidency, the rhetoric of economic nationalism and deregulation returns to the forefront.
His policies, coupled with cabinet picks drawn heavily from corporate leadership, renew the debate on the role and purpose of corporations in society. Central to this discussion is the doctrine of shareholder primacy—the belief that the primary obligation of corporations is to maximize shareholder returns. While this approach dominates boardrooms and economic policy, its shortcomings are more evident than ever. Two critical flaws undermine shareholder primacy: its lack of legitimacy and its practical inefficacy.
