Finding hard evidences for the soft rhetoric of the stakeholder theory

Author
Bocatto, Evandro
Perez-de-Toledo, Eloisa
Faculty Advisor
Date
2018
Keywords
stakeholder theory , employee participation in management , market value , stakeholders , mathematical models
Abstract (summary)
The hard-science type of rhetoric present in the dominant model in management is put under scrutiny. As a result, the shareholders' profit maximization ideal is understood as just a competing socially constructed rhetoric. We are motivated by: 1. why is it taken for granted that the dominant model of business activity is scientific? and, 2. How the competing stakeholder approach would look like? We present mathematical equations that capture other constructs (e.g. women and employee participation, CSR, CER) and propose a stakeholder index (GOV-Icompr). Results indicate that companies that include other stakeholders have superior market value (measured by Tobin 's q).
Publication Information
Bocatto, E., & Perez-de-Toledo, E. (2018). Finding hard evidences for the soft rhetoric of the stakeholder theory. American Journal of Management, 18(1), 61-75. https://doi.org/10.33423/ajm.v18i1.305
DOI
Notes
Item Type
Article
Language
English
Rights
All Rights Reserved