As the visionary Peter Drucker foresaw
many years ago (1976), managerial governance
faces a crisis: how can managers whose
very jobs are being redefined pretend to
understand and act for the interests of many
thousands of increasingly well organised
shareowners and other stakeholders? A view
maintained by many in the 1990s suggested
that the creation of shareholder value (managing
for a higher share price) could reconcile
the interests of all the different stakeholders of
the corporation (Jensen, 2001).