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Stakeholder theory and value creation

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  • Argandoña, Antonio

    (IESE Business School)

Abstract

What 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.

Suggested Citation

  • Argandoña, Antonio, 2011. "Stakeholder theory and value creation," IESE Research Papers D/922, IESE Business School.
    • Handle: RePEc:ebg:iesewp:d-0922
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    File URL: http://www.iese.edu/research/pdfs/DI-0922-E.pdf
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    References listed on IDEAS

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    Cited by:

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    2. Walid El Gammal & Noura Yassine & Khodr Fakih & Abdul-Nasser El-Kassar, 2020. "The relationship between CSR and corporate governance moderated by performance and board of directors’ characteristics," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 24(2), pages 411-430, June.
    3. Faith Wambui Kanjumba, 2017. "Economic and Innovative Factors Influence on Funding of the Supply-Side of Housing in Nairobi, Kenya," Business and Management Studies, Redfame publishing, vol. 3(4), pages 39-53, December.

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    Keywords

    Company; interest groups; income; stakeholders; value;
    All these keywords.

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