by Andrew Wicks and Jeffrey Harrison
The notion of value is often overly simplified and narrowed to focus on economic returns (i.e. shareholder returns). Stakeholder Theory provides an appropriate lens for considering a more complex perspective of the value that stakeholders seek as well as new ways to measure it. We have developed a four-factor perspective for defining value that includes, but extends beyond, the economic value stakeholders seek. To highlight its distinctiveness, we compare this perspective with three other popular performance perspectives. You can read more about this perspective in “Stakeholder Theory, Value, and Firm Performance” in the latest Business Ethics Quarterly.
The stakeholder perspective on value offered draws attention to those factors that are most closely associated with building more value for stakeholders, and in so doing, allows academics to better measure it and enhances managerial ability to create it.