The Rise of 'Hybrid Companies' and the Recent Changes in Directors' Roles for Corporate Social Responsibility

Abstract

Enlightened shareholder primacy (ESP) is a new approach in corporate governance (CG) framework. The emergence of this approach is important due to its role in answering a vital question: is the company really a private organization to be seen only through the economic prism of contract? Or is it public and about a wider group of interests and underwritten by communitarian concern about social responsibility? Apart from answering this question, ESP explains the changes in corporate directors’ roles and self-regulation strategies of companies.