Stake in innovation: Laws allowing companies to prioritize stakeholders boost innovative activity
Thursday, February 18, 2016 - 13:31
in Mathematics & Economics
Little-known state laws called 'constituency statutes' have significant effects on the quantity and quality of innovative business actions, say authors of a new article. The statutes, which allow companies to prioritize the interests of 'stakeholders' -- often employees -- rather than just shareholders, tend to allow businesses more time to bring innovations to market, rather than forcing those companies to prioritize quarterly financial results at the exclusion of new products and new activities.