Traditionally in business law, corporate managers have had no real duties except toward the owners (shareholders). By changing two letters in shareholder, stakeholder theorists widened the range of people and institutions that a corporation should pay moral consideration to. Thus, they contend that a corporation, through its management, has a set of responsibilities toward non-shareholder interests. Explain why legislation is necessary in areas of law other than contracts or torts to regulate the conduct of corporations and those who run them.

Should a business be more responsible to shareholders, who are most benefited through revenue and profit generation, or to stakeholders, including employees, and society at large?