Chapter

The Customer Corporation

John Kay

in The Business of Economics

Published in print October 1996 | ISBN: 9780198292227
Published online November 2003 | e-ISBN: 9780191596520 | DOI: http://dx.doi.org/10.1093/0198292228.003.0014
 The Customer Corporation

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The stake‐holding view of the nature and purposes of corporations applies most forcefully to monopoly public utilities. This chapter analyses some of the problems of utility regulation and proposes a stake‐holding alternative. In this context, the purpose of a privatized utility should be to serve its customers, and its obligations to shareholders exist only to the extent necessary to ensure that the company can meet its primary purpose.

Keywords: corporate governance; customers; monopoly; privatisation; public utilities; shareholders; stakeholders; utility regulation

Chapter.  7117 words. 

Subjects: Microeconomics

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