Directors’ Epistemic Duties and Fiduciary Openness
A Cross-Cultural and Interdisciplinary Framework for Corporate Governance
Abstract
In this thesis, I develop a comprehensive normative and operational framework for embedding epistemic openness within fiduciary corporate governance, arguing that directors have distinct epistemic duties requiring them to systematically integrate diverse stakeholder knowledge. Drawing on fiduciary ethics (Frankel, 2011), epistemic justice theory (Fricker, 2007; Anderson, 2012), stakeholder theory (Freeman, 1984), and Sen’s capability approach (Sen, 2009), I demonstrate how meaningful stakeholder participation is central to organisational legitimacy, innovation, and sustainability.
I explicitly counter Abraham Singer’s (2015) assertion that Rawlsian principles of justice cannot be meaningfully applied to corporate governance. Contrary to Singer, I argue that corporate governance is inherently political, given corporations’ extensive influence over public policy, economic equality, and social welfare. Therefore, appropriately contextualised Rawlsian principles of fairness are not only relevant but necessary for addressing structural epistemic injustices within contemporary corporate governance.
Further enriching my theoretical framework, I strategically integrate Elizabeth Anderson’s systemic approach to epistemic justice (Anderson, 2012), highlighting the importance of institutional reforms designed explicitly to foster epistemic fairness in governance. Additionally, I synthesise diverse global philosophical traditions—including Confucian relational ethics (儒家之和諧, الأخلاق العلائقية الكونفوشيوسية, אתיקה יחסית קונפוציאנית, कन्फ्यूशियस पारस्परिक नैतिकता), Daoist non-coercive governance (Wu-Wei, 無為), Buddhist mindfulness (佛教之緣起), Islamic structured consultation (shura, شورى, 伊斯蘭之諮詢倫理), Hebrew stewardship (אחריות ניהולית, 希伯來之管家倫理), Hindu ethical duties (Dharma, धर्म) and epistemic humility (Jnana, ज्ञान), Christian servant leadership (基督教之僕人領導), Māori relational accountability (whanaungatanga) and stewardship (kaitiakitanga), and Ubuntu collective epistemic responsibility (Ubuntu, المسؤولية المعرفية الجماعية, ज्ञानात्मक सामूहिक उत्तरदायित्व, 烏班圖之共同責任)—to offer culturally nuanced, ethically robust guidance for practical implementation.
My research offers practical, high‑impact guidance for today’s corporate priorities:
ESG Integration: Provides structured, values‑based mechanisms—like inclusive stakeholder consultations and transparent reporting—that directly align with environmental stewardship, social responsibility, and robust governance practices.
DEI Commitment: By embedding epistemic openness, directors create governance systems that intentionally include diverse voices, perspectives and lived experiences—strengthening diversity, equity, and inclusion through genuine epistemic participation rather than surface-level representation.
Through a critical comparative analysis of existing fiduciary frameworks in the UK, US (Delaware), EU/OECD, and Australia, I identify common epistemic deficiencies and propose targeted legislative, regulatory, and best-practice reforms. My operational taxonomy specifically recommends structured stakeholder consultations, transparent documentation standards, clear accountability mechanisms, and targeted director training programmes to effectively embed epistemic openness in corporate decision-making.
Ultimately, my thesis provides foundational normative and operational insights, significantly expanding traditional fiduciary governance conceptions, and proposing clear pathways toward ethically accountable, inclusive, and epistemically robust corporate governance.
Keywords
Fiduciary duties, epistemic openness, corporate governance, epistemic justice, stakeholder theory, Confucian ethics (儒家之和諧), Daoism (Wu-Wei, 無為), Buddhism (佛教之緣起), Islamic governance (shura, شورى), Hebrew stewardship (אחריות ניהולית), Hindu ethics (Dharma, धर्म; Jnana, ज्ञान), Māori governance (whanaungatanga, kaitiakitanga, hui), Ubuntu philosophy, corporate resilience, regulatory reform, stakeholder engagement, governance innovation, ethical accountability, transparency, structured stakeholder consultation, ESG, Diversity Equality Inclusion
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Cite this work:
Peter Kahl, ‘Directors’ Epistemic Duties and Fiduciary Openness’ (2025) <https://pkahl.substack.com/p/directors-epistemic-duties-and-fiduciary>