Academic
Publications
Shareholder value, stakeholder management, and social issues: what's the bottom line?

Shareholder value, stakeholder management, and social issues: what's the bottom line?,10.1002/1097-0266(200101)22:2<125::AID-SMJ150>3.0.CO;2-H,Strateg

Shareholder value, stakeholder management, and social issues: what's the bottom line?   (Citations: 338)
BibTex | RIS | RefWorks Download
We test the relationship between shareholder value, stakeholder management, and social issue participation. Building better relations with primary stakeholders like employees, customers, suppliers, and communities could lead to increased shareholder wealth by helping firms develop intangible, valuable assets which can be sources of competitive advantage. On the other hand, using corporate resources for social issues not related to primary stakeholders may not create value for shareholders. We test these propositions with data from S&P 500 firms and find evidence that stakeholder management leads to improved shareholder value, while social issue participation is negatively associated with shareholder value. Copyright ? 2001 John Wiley & Sons, Ltd.
Journal: Strategic Management Journal - STRATEG MANAGE J , vol. 22, no. 2, pp. 125-139, 2001
Cumulative Annual
View Publication
The following links allow you to view full publications. These links are maintained by other sources not affiliated with Microsoft Academic Search.
    • ...We defined the concept of CSD as the degree to which firms adopt social, economic, and environmental development in their operations (Baumgartner and Ebner 2010; Hillman and Keim 2001; Russo 2003)...
    • ...Wood’s (1991) framework for CSR, which is modeled and based on socially responsible processes, has been widely accepted in the business community (Hillman and Keim 2001)...
    • ...One way to achieve economic success or long-term competitiveness is value creation (Bansal 2005), which is calculated by subtracting capital investment from market value (Hillman and Keim 2001)...

    Wing S. ChowYang Chenet al. Corporate Sustainable Development: Testing a New Scale Based on the Ma...

    • ...Although previous studies have shown that stakeholders, to some degree, play a role in developing or changing corporate strategy (Wood and Jones 1995; Hillman and Keim 2001), it was assumed that this response rested solely on whether the stakeholder was seen to be legitimate by the targeted firms (Clarkson 1995)...

    Rupert Allenet al. Shareholder engagement in the extractive sector

    • ...The use of perceptual measures is common in management research (Ghobadian and O’Regan 2006), and CEOs’ perceptions of their operating environment, culture and leadership style enjoy a high level of validity (Hillman and Keim 2001)...

    Julia Ivy. State-controlled economies vs. rent-seeking states: Why small and medi...

    • ...By developing long-term relationships with primary stakeholders, a set of value-creating exchanges happen that are relational rather than transactional since ‘transactional interactions can be easily duplicated and thus offer little potential for competitive advantage’ (Hillman & Keim 2001: 127)...

    Sonya Graci. Collaboration and Partnership Development for Sustainable Tourism

    • ...It could also be that as Hillman and Keim (2001) acknowledge, traditional markets do not recognize the value of ethical/social issues...

    April Knill. The value of country-level perceived ethics to entrepreneurs around th...

Sort by: