Stakeholder theory and value creation
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.
|Date of creation:||05 May 2011|
|Contact details of provider:|| Postal: IESE Business School, Av Pearson 21, 08034 Barcelona, SPAIN|
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- Sacco, Pier Luigi & Vanin, Paolo & Zamagni, Stefano, 2006. "The Economics of Human Relationships," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier.
- Gérard Charreaux & Philippe Desbrières, 2001.
"Corporate Governance: Stakeholder Value Versus Shareholder Value,"
Working Papers CREGO
1010301, Université de Bourgogne - CREGO EA7317 Centre de recherches en gestion des organisations.
- Gérard Charreaux & Philippe Desbrières, 2001. "Corporate Governance: Stakeholder Value Versus Shareholder Value," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 5(2), pages 107-128, June.
- Edward Freeman, R. & Phillips, Robert A., 2002. "Stakeholder Theory: A Libertarian Defense," Business Ethics Quarterly, Cambridge University Press, vol. 12(03), pages 331-349, July.
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