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Shareholder Primacy and the Trajectory of UK Corporate Governance

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  • John Armour
  • Simon Deakin
  • Suzanne J. Konzelmann

Abstract

Core institutions of UK corporate governance, in particular those relating to takeovers, board structure and directors' duties, are strongly orientated towards a norm of shareholder primacy. Beyond the core, in particular at the inter-section of insolvency and employment law, stakeholder interests are better represented, thanks largely to European Community influence. Moreover, institutional shareholders are redirecting their investment strategies away from a focus on short-term returns, in such a way as to favour stakeholder-inclusive practices. We therefore suggest that the UK system is currently in a state of flux and that the debate over shareholder primacy has not been concluded. Copyright Blackwell Publishing Ltd/London School of Economics 2003.

Suggested Citation

  • John Armour & Simon Deakin & Suzanne J. Konzelmann, 2003. "Shareholder Primacy and the Trajectory of UK Corporate Governance," British Journal of Industrial Relations, London School of Economics, vol. 41(3), pages 531-555, September.
  • Handle: RePEc:bla:brjirl:v:41:y:2003:i:3:p:531-555
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    Cited by:

    1. Neil Conway & Simon Deakin & Suzanne Konzelmann & Héloïse Petit & Antoine Rebérioux & Frank Wilkinson, 2008. "The Influence of Stock Market Listing on Human Resource Management: Evidence for France and Britain," British Journal of Industrial Relations, London School of Economics, pages 631-673.
    2. Simon Deakin & Aristea Koukiadaki, 2008. "Governance Processes, Employee Voice and Performance Outcomes in the Construction of Heathrow Terminal 5," Working Papers wp368, Centre for Business Research, University of Cambridge.
    3. Catherine Barnard & Simon Deakin & Richard Hobbs, 2004. "Reflexive law, corporate social responsibility and the evolution of labour standards: the case of working time," Working Papers wp294, Centre for Business Research, University of Cambridge.
    4. Hervé Stolowy & Yuan Ding & Jacques Richard, 2007. "Towards an understanding of the phases of goodwill accounting in four Western capitalist countries: From stakeholder model to shareholder model," Working Papers hal-00580142, HAL.
    5. Neil Conway & Simon Deakin & Suzanne Konzelmann & Héloïse Petit & Antoine Rebérioux & Frank Wilkinson, 2008. "The Influence of Stock Market Listing on Human Resource Management: Evidence for France and Britain," British Journal of Industrial Relations, London School of Economics, pages 631-673.
    6. Ding, Yuan & Richard, Jacques & Stolowy, Hervé, 2008. "Towards an understanding of the phases of goodwill accounting in four Western capitalist countries: From stakeholder model to shareholder model," Accounting, Organizations and Society, Elsevier, pages 718-755.
    7. Simon Deakin & Richard Hobbs, 2006. "False dawn for CSR? Shifts in regulatory policy and the response of the corporate and financial sectors in Britain," Working Papers wp333, Centre for Business Research, University of Cambridge.
    8. Adegbite, Emmanuel & Amaeshi, Kenneth & Nakajima, Chizu, 2013. "Multiple influences on corporate governance practice in Nigeria: Agents, strategies and implications," International Business Review, Elsevier, pages 524-538.
    9. Ding, Yuan & Richard, Jacques & Stolowy, Hervé, 2008. "Towards an understanding of the phases of goodwill accounting in four Western capitalist countries: From stakeholder model to shareholder model," Accounting, Organizations and Society, Elsevier, pages 718-755.
    10. Lippert, Inge, 2008. "Perspektivenverschiebungen in der Corporate Governance: Neuere Ansätze und Studien der Corporate-Governance-Forschung," Discussion Papers, Research Unit: Knowledge, Production Systems and Work SP III 2008-302, Social Science Research Center Berlin (WZB).
    11. Shiang-Min Meng, 2013. "Application of Laozi’s Daodejing to Current Corporate Governance," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 3(10), pages 2114-2133, October.
    12. Lukáš Marek, 2012. "Institutional Differences Between the British and German Economic Models: Corporate Sector and Labour Market," Acta Oeconomica Pragensia, University of Economics, Prague, pages 25-38.
    13. Labadi, Moufida & Nekhili, Mehdi, 2012. "Structure de propriété et partage de la valeur ajoutée : application aux entreprises françaises non financières du SBF120," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 12.

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