Individually or collectively, corporate leaders are promising stakeholders to improve corporate practices on a range of issues. In a new article, I argue that they can demonstrate their commitment to stakeholders by designing contracts differently.
We are already attentive to the ways that stakeholders are harmed by the contracts they enter into directly with corporations. This awareness has raised concerns over contracting practices and bargaining power, information asymmetries, and informed consent. In my article, I focus on contracts to which stakeholders are not parties, and how those contracts can nonetheless harm stakeholders as third parties. For example, contracts … Read more