Stakeholder theory and Lebanese corporate law : a comparative study

Abstract EN

This article provides a view of the stakeholder theory’s doctrinal context, demonstrating how American management and legal doctrines developed such a theory in order to face classical shareholder-oriented theories.

The aim is to find a new approach to face current changes in the commercial world and to meet the needs of the various players involved in the corporate world.

As a result, this article emphasizes the importance of the benefits that this theory could have on the Lebanese corporate environment once implemented, and it examines the various categories of stakeholders.

This theory, in particular, demonstrates the positive impact it could have on the various stakeholders in the corporate environment if implemented in Lebanon.

In fact, implementing this theory will result in a mutual benefit: on the one hand, the various stakeholders will be more loyal and invested in the company’s success.

On the other hand, the company will make long-term profits.

To achieve these objectives, the stakeholder theory encourages the company’s directors to consider not only the interests of the shareholders but also the interests of the various stakeholders during the decision-making process.

Hence, the stakeholder theory encourages the director to strike a balance between these various interests rather than establishing a hierarchy among them.

This paper invites the Lebanese legislator to reconsider the company’s purpose and strike a balance between competing interests when enacting any corporate law text, thus allowing the company to meet the various economic and social challenges.