A constituency statute is a term in US corporate law for a rule that requires a board of directors to pay regard to the interests of all corporate stakeholders in their decision making. A constituency statute is intended to give directors of corporations the discretion to balance the interests of stakeholders, rather than have to solely focus on maximizing shareholder value in a way that could damage the long-term sustainability of the enterprise.
In 1991, 28 states were recorded as having constituency statutes.[1] Professor Charles Hansen recorded the following: