From Shareholder primacy to Stakeholder governance: rhetoric or reality?

Frame of the research. The increasing emphasis on stakeholder governance has profoundly reshaped the corporate governance debate, challenging the traditional primacy of shareholder value. The 2019 Business Roundtable (BRT) Statement represented a pivotal moment in this shift, pledging a broader corporate commitment to all stakeholders. However, doubts persist regarding the substantive implementation of these principles, raising concerns about the sincerity of corporate engagement with stakeholder-oriented governance. Purpose of the paper. We examine whether signatory companies of the BRT Statement have translated their commitments into concrete governance changes. Methodology. Drawing on an empirical analysis of corporate governance guidelines from leading publicly traded firms, we assess the evolution of governance structures from 2019 to 2024. Results. Our findings reveal a persistent gap between rhetoric and reality, as despite public declarations, the governance structures of most firms remain fundamentally anchored in shareholder primacy. While some companies exhibit a gradual transition toward stakeholder integration, for the majority, stakeholderism appears more as a reputational strategy than a structural transformation. Research limitations. A limitation is that the sample is restricted to only 39 companies. Additionally, a limitation concerns the nature of the metrics used to assess the stakeholder governance orientation. Measuring corporate transformation requires more sophisticated tools that go beyond textual analysis and integrate empirical data on business decisions, value distribution among different stakeholders, and the social and economic impact of governance strategies. Managerial implications. For firms, explaining how and if governance structures are evolving to integrate stakeholder interests without compromising financial performance. Originality of the paper. This paper contributes to the corporate governance research by offering an updated empirical assessment of stakeholderism's actual adoption in major corporations that signed the BRT Statement.