By: Andrew Roop
The shareholder value maximization norm has long been the
subject of debate among Christian denominations. The primary
question is whether this norm should be expanded to include other
stakeholders besides shareholders. This Note will present
various stances regarding the shareholder value maximization norm,
which result from differing implications of original sin among
Christian denominations, and ultimately explain why the norm should
remain unchanged.
First, this Note will demonstrate the problem of “corporate
unrest” through the eyes of shareholders and stakeholders using the
notorious Enron collapse. Next, this Note will discuss
Christian teaching as it applies to the topics of humanity and
wealth, two of the fundamental elements in the normative debate
over shareholder value maximization. Using the famous
case, Dodge v. Ford, this Note will go on to enumerate the
norm itself and then present some contrasting denominational
analyses of Christianity’s compatibility with the principle.
This Note will conclude with the assertion that, regardless of the
denominational analysis adopted, the law as it exists today is the
best approach for preserving the integrity of the market and
deriving the maximum societal benefit.