Stakeholder theory and value creation
AbstractWhat does it mean that companies must "create value", or "be managed" for "all their stakeholders"? In this paper we aim to show what creating economic value and appropriating economic value mean, in order to demonstrate that so long as we confine ourselves to an exclusively economic concept of "value", though it may be possible (at least in theory) to achieve economic optima, we will not achieve sustainable, conflict-free management because we will be omitting important aspects of reality. We therefore propose to broaden the concept of value, based not on criteria external to the company but on the core relationship between the company and its stakeholders. This allows us to identify a whole range of "values" that take stakeholder theory to a higher level.
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Bibliographic InfoPaper provided by IESE Business School in its series IESE Research Papers with number D/922.
Length: 15 pages
Date of creation: 05 May 2011
Date of revision:
Company; interest groups; income; stakeholders; value;
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- Gérard Charreaux & Philippe Desbrières, 2001.
"Corporate Governance: Stakeholder Value Versus Shareholder Value,"
Working Papers FARGO
1010301, Université de Bourgogne - Leg (laboratoire d'économie et de gestion)/Fargo (Research center in Finance,organizational ARchitecture and GOvernance).
- Gérard Charreaux & Philippe Desbrières, 2001. "Corporate Governance: Stakeholder Value Versus Shareholder Value," Journal of Management and Governance, Springer, vol. 5(2), pages 107-128, June.
- Sacco, Pier Luigi & Vanin, Paolo & Zamagni, Stefano, 2006. "The Economics of Human Relationships," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier.
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