In contrast to the more traditional shareholder approach, the newly emerging stakeholder theory insists that business is about more than just making money. It’s about all stakeholders’ interests, and declares that companies have a social and environmental responsibility to the community at large. In the paper “Maximizing Stakeholders’ Interests: An Empirical Analysis of the Stakeholder Approach to Corporate Governance,” Silvia Ayuso, Miguel Ángel Rodríguez, Roberto García and Miguel Angel Ariño, all of IESE, look at how the stakeholder approach affects firms´ financial performance worldwide. The results are clear: Depending on where the company is based, a board that takes responsibility for CSR and engages with its stakeholders can improve financial results.
Authors: Miguel Ángel Ariño, Miguel Ángel Rodríguez, Roberto García, Silvia Ayuso
Source: IESE Insight
Subject: Social Responsibility (ESG)
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