Reframing Fiduciary Duties in Corporate Law: Transition from Shareholder Primacy to Stakeholder Governance
Abstract
This article examines the doctrinal evolution of fiduciary duties in corporate law by analyzing the transition from shareholder primacy toward stakeholder governance and determining whether contemporary developments constitute reinterpretation or structural transformation. Historically, the duties of care and loyalty were constructed as mechanisms to safeguard shareholder interests and mitigate managerial opportunism, positioning shareholder protection as the central objective of corporate governance. However, the rise of environmental, social, and governance considerations, corporate purpose reforms, and sustainability due diligence initiatives has intensified debates concerning the scope of directors’ obligations. This study employs a qualitative normative juridical approach using a systematic literature review to synthesize contemporary corporate law scholarship and regulatory developments. The findings reveal a three-phase progression: the entrenchment of shareholder primacy, a reinterpretation phase emphasizing long-term shareholder value through ESG integration, and a stakeholder governance turn shaped by legislative reform and litigation pressures. The study concludes that fiduciary duties are being recalibrated rather than replaced, reflecting an adaptive integration of sustainability and stakeholder accountability within existing doctrinal structures. The article contributes theoretically by reconciling agency and stakeholder perspectives and offers practical implications for clarifying directors’ responsibilities in the ESG era
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