Taking agency theory and stakeholder theory as points of departure, th
is article proposes a paradigm that helps explain the following: (1) c
ertain aspects of a firm's strategic behaviour; (2) the structure of m
anagement-stakeholder contracts; (3) the form taken by the institution
al structures that monitor and enforce contracts between managers and
other stakeholders; and (4) the evolutionary process that shapes both
management-stakeholder contracts and the institutional structures that
police those contracts.