Journal of Business Ethics 27 (1-2):137 - 148 (2000)
AbstractShareholder value orientation has been introduced as a means to improve the performance of the corporation. The paper investigates the theoretical justification for the claim that increasing shareholder value is the purpose of corporate governance. It demonstrates that shareholder value is the control principle, not the purpose of the firm. The idea that shareholder value is the only goal of the corporation is a mistaken transfer from the financial to the industrial firm. The paper also questions that the merger of manager interests and owner interests introduced by the remuneration of managers by stock options improves the management performance. The self-apportioning of stock options by the management is in danger of becoming a form of insider trading.
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References found in this work
The Politics of Stakeholder Theory: Some Future Directions.R. Edward Freeman - 1994 - Business Ethics Quarterly 4 (4):409-421.
Citations of this work
Organizational Architecture, Ethical Culture, and Perceived Unethical Behavior Towards Customers: Evidence From Wholesale Banking.Raymond O. S. Zaal, Ronald J. M. Jeurissen & Edward A. G. Groenland - 2019 - Journal of Business Ethics 158 (3):825-848.
Organizational Architecture, Ethical Culture, and Perceived Unethical Behavior Towards Customers: Evidence From Wholesale Banking.Edward Groenland, Ronald Jeurissen & Raymond Zaal - 2019 - Journal of Business Ethics 158 (3):825-848.
Thomas Aquinas on Justice as a Global Virtue in Business.Claus Dierksmeier & Anthony Celano - 2012 - Business Ethics Quarterly 22 (2):247-272.
Embedding Corporate Social Responsibility in Corporate Governance: A Stakeholder Systems Approach.Chris Mason & John Simmons - 2014 - Journal of Business Ethics 119 (1):77-86.
The Common Good of Business: Addressing a Challenge Posed by «Caritas in Veritate». [REVIEW]Alejo José G. Sison & Joan Fontrodona - 2011 - Journal of Business Ethics 100 (S1):99-107.
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