Maximizing stakeholders' interests: An empirical analysis of the stakeholder approach to corporate governance
AbstractThe purpose of this paper is to build on the emerging stakeholder model of corporate governance by analyzing the CSR function at board level, board diversity, and stakeholder engagement, and how it relates to financial performance. Based on an empirical study of an international sample of large companies, we find board responsibility for CSR to be a key factor in promoting engagement with primary and secondary stakeholders of the firm. Depending on the legal tradition of the country in which the company is based, we find evidence that board diversity and stakeholder engagement are positively correlated with firm financial performance.
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Bibliographic InfoPaper provided by IESE Business School in its series IESE Research Papers with number D/670.
Length: 24 pages
Date of creation: 19 Jan 2007
Date of revision:
Corporate governance; corporate social responsibility; board diversity; stakeholder engagement; firm performance;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-05-04 (All new papers)
- NEP-BEC-2007-05-04 (Business Economics)
- NEP-CFN-2007-05-04 (Corporate Finance)
- NEP-SOC-2007-05-04 (Social Norms & Social Capital)
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