Stakeholder Theory and Value Creation

15 Pages Posted: 22 Oct 2011

See all articles by Antonio Argandoña

Antonio Argandoña

University of Navarra - IESE Business School

Date Written: May 21, 2011

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.

Keywords: Company, Interest groups, Income, Stakeholders, Value

Suggested Citation

Argandoña, Antonio, Stakeholder Theory and Value Creation (May 21, 2011). IESE Business School Working Paper No. 922, Available at SSRN: https://ssrn.com/abstract=1947317 or http://dx.doi.org/10.2139/ssrn.1947317

Antonio Argandoña (Contact Author)

University of Navarra - IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034
Spain
+34 93 2534200 (Phone)
+34 93 2534343 (Fax)

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