Johnston, A. (2014) Reforming English Company Law to Promote Sustainable Companies. European Company Law, 11 (2). 63 - 66. ISSN 1572-4999
Abstract
English company law already allows company directors to take account of sustainability in their decision-making, but the corporate governance system gives them strong incentives not to do so. This article will argue that, if it is accepted that sustainability cannot be achieved through regulation, two main changes are necessary in English law. First, company law should be changed to require directors to identify and internalise the company’s externalities. Second, significant changes to the corporate governance system, which incentivises corporate management to pursue short-term shareholder value as expressed in the share price, will be required. However, the article concludes that neither of these changes are likely whilst neoclassical economic ideology maintains its grip on policy-makers.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © Kluwer Law International. This is an author produced version of a paper subsequently published in European Company Law. Uploaded in accordance with the publisher's self-archiving policy. |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > School of Law (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 10 Sep 2015 09:44 |
Last Modified: | 29 Oct 2015 15:48 |
Published Version: | http://papers.ssrn.com/sol3/papers.cfm?abstract_id... |
Status: | Published |
Publisher: | Kluwer Law International |
Refereed: | Yes |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:89593 |