The theory of corporate governance underlying the Corporation Code of the Philippines is essentially the classical Stockholder Theory in the Friedmanesque mode.
The theory of corporate governance underlying the Corporation Code of the Philippines is essentially the classical Stockholder Theory in the Friedmanesque mode. The function of the corporation to increase or maximize profits is implicit in the entire Code. Duties only toward the stockholders are specified, and no mention is made of the other stakeholders. This is understandable because the Corporation Code took effect only on May 1, 1980, whereas Stakeholder Theory was introduced in the mid-eighties.
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