Stakeholder Strategy IG

Do Investors Actually Value Sustainability?

The debate about how investors perceive corporate social responsibility (CSR) predates Milton Friedman’s famous statement that the only social responsibility of business is to increase profits. Although extensive research has…

Measuring value creation and appropriation in firms: The VCA model

Firms create value not only for shareholders, but also for other stakeholders, including employees, customers and suppliers. This article applies a method to quantify the “new” economic value created by…

Do firms use CSR to insure against stock price risk?

Corporate social responsibility has many purported benefits, one of which is that it can insure against the adverse stock price effects of negative events. But do managers purposefully use CSR…

Mind the Gap: The Interplay between External and Internal Actions

Companies often accumulate intangible assets by taking internally and externally oriented CSR actions. Contrary to popular beliefs, the data show that they undertake more internal than external ones: firms do…

Jay Barney: Why Resource-based Theory Must Incorporate a Stakeholder Perspective

Some argue that since shareholders are the only stakeholder who have a claim on a firm’s profits, managers should focus only on maximizing shareholder wealth. Not only will this satisfy…

Flammer & Bansal, Does a Long-Term Orientation Create Value?

This paper shows that corporate short-termism is hampering business success. We show clear, causal evidence that imposing long-term incentives on executives—in the form of long-term executive compensation—improves business performance. Long-term…

Biranu, Gambardella, & Valentini on Bribery and Investment

We ask whether, along with ethical issues, bribing affects the behavior and performance of firms in A frica and L atin A merica. Our statistical analysis shows that bribe payments…

Location matters: Valuing firmspecific nonmarket risk…global mining industry

We argue that mines located near environmentally sensitive water sources are subject to nonmarket risks arising from the potential collective actions of local stakeholders and their allies. Stakeholder mobilization can…

Caroline Flammer – Product market competition & CSR

This study examines whether product market competition affects corporate social responsibility (CSR). To obtain exogenous variation in product market competition, I exploit a quasi-natural experiment provided by large import tariff…

Toward a dynamic notion of value creation and appropriation in firms

Most managers and the business press regard “value creation” as the increase in shareholder wealth represented by a rise in corporate profit or stock price. A broader conception of value…

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