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then sort of the University of California at Los Angeles welcome to the Faculty of Law at UNSW whats the point of your lecture the point of my lecture is I think its time for us all to look around and say you know we may have made a dreadful mistake in the way weve been thinking about corporations I have to tell you I adore corporations they have done enormous amounts to bring peace and prosperity to the world but the last few years I would say their record is not quite as strong as we would like it to be and I trace that to a very mistaken idea I think that has become quite popular around the world and that is the idea that the purpose of the corporation is to maximize shareholder value I think its time for us to re-examine that notion because it doesnt seem to be working out terribly well for shareholders or for anyone else we have this entirely artificial notion of this hypothetical entity we call the shareholder and the shareholder in quotation marks cares only about the price