Corporate Purpose and Governance for a Livable Planet

Abstract

This chapter considers the role of business law within the field of environmental law. It makes the case that environmental law has largely ignored business law and economic system dynamics. It also explains shareholder primacy as a law or norm of investor-owned corporations by integrating the work of business law scholars. The chapter discusses how the norm shapes corporate purpose and undermines Sustainable Development Goals and decarbonization. It looks at proposals that could transform the corporation, including creating an environmental priority principle in law, defining corporate purpose to benefit stakeholders, and sparking social enterprise for innovative entrepreneurs and conversions of existing businesses.