The Corporate Objective Revisited
TLDR
In this paper, the authors explain why maximizing shareholder value should be the sole objective function for governing the corporation and why that objective function is, on balance, good for all stakeholders.Abstract:
In this we paper we explain why maximizing shareholder value should be the sole objective function for governing the corporation and why that objective function is, on balance, good for all stakeholders. Shareholder value maximization is the ideal corporate goal because it is the best among all available alternatives for governing the corporation and, therefore, one that makes the most sense for managers formulating and implementing strategy. We construct a set of five normative arguments for the shareholder value maximization view. To support our position we trace the origins of the corporate governance debate from the late nineteenth century and its resulting implications for accepted corporate law and practice of corporate governance in the United States. We examine the debate as reflected in the shareholder/stakeholder arguments in the management and strategy literatures, and the contractarian/communitarian arguments as reflected in the legal literature.read more
Citations
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Stakeholder Theory and The Corporate Objective Revisited
TL;DR: This paper offers a response to Sundaram and Inkpen's article "The Corporate Objective Revisited" by clarifying misconceptions about stakeholder theory and concluding that truth and freedom are best served by seeing business and ethics as connected.
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The New Political Role of Business in a Globalized World: A Review of a New Perspective on CSR and its Implications for the Firm, Governance, and Democracy
TL;DR: A review of the literature shows that there are a growing number of publications from various disciplines that propose a politicized concept of corporate social responsibility as mentioned in this paper, and that many business firms have started to assume social and political responsibilities that go beyond legal requirements and fill the regulatory vacuum in global governance.
Posted Content
Toward a Political Conception of Corporate Responsibility - Business and Society Seen from a Habermasian Perspective
TL;DR: This article proposed a new approach, based on J?rgen Habermas's theory of democracy, and defined the new role of the business firm as a political actor in a globalizing society.
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Does it Pay to Be Good...And Does it Matter? A Meta-Analysis of the Relationship between Corporate Social and Financial Performance
TL;DR: This article conducted a meta-analysis of 251 studies presented in 214 manuscripts and found that the overall effect is positive but small (mean r =.13, median r = 0.09, weighted r = 1.11), and results for the 106 studies from the past decade are even smaller.
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Conceptualizing a “Sustainability Business Model”:
Wendy Stubbs,Chris Cocklin +1 more
TL;DR: In this article, a "sustainability business model" (SBM) is proposed, where sustainability concepts shape the driving force of the firm and its decision making, and it is drawn from two case studies of organizations considered to be leaders in operationalizing sustainability and is informed by the ecological modernization perspective of sustainability.
References
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Theory of the firm: Managerial behavior, agency costs and ownership structure
TL;DR: In this article, the authors draw on recent progress in the theory of property rights, agency, and finance to develop a theory of ownership structure for the firm, which casts new light on and has implications for a variety of issues in the professional and popular literature.
Journal ArticleDOI
The Nature of the Firm
TL;DR: In this paper, it is shown that a definition of a firm may be obtained which is not only realistic in that it corresponds to what is meant by a firm in the real world, but is tractable by two of the most powerful instruments of economic analysis developed by Marshall, the idea of the margin and that of substitution.
Competitive advantage: creating and sustaining superior performance
TL;DR: Porter's concept of the value chain disaggregates a company into "activities", or the discrete functions or processes that represent the elemental building blocks of competitive advantage as discussed by the authors, has become an essential part of international business thinking, taking strategy from broad vision to an internally consistent configuration of activities.
Book
Strategic Management: A Stakeholder Approach
TL;DR: The Stakeholder Approach: 1. Managing in turbulent times 2. The stakeholder concept and strategic management 3. Strategic Management Processes: 4. Setting strategic direction 5. Formulating strategies for stakeholders 6. Implementing and monitoring stakeholder strategies 7. Conflict at the board level 8. The functional disciplines of management 9. The role of the executive as mentioned in this paper.