Professional Documents
Culture Documents
Eleven
Corporate
Performance,
Governance,
and Business
Ethics
Stakeholders
and Corporate Performance
Stakeholders are individuals or groups with an
interest, claim, or stake in the company, what it
does, and how well it performs.
Stakeholders are in an exchange
relationship with the company
• Contributions: they supply the
organization with important resources
• Inducements: in exchange they
expect their interests to by satisfied
Companies should pursue strategies that
maximize long-run shareholder value and
must also behave in an ethical and
socially responsible manner.
Copyright © Houghton Mifflin Company. All rights reserved. 11 | 2
Stakeholders and the Enterprise
Figure 11.1
Source: D. Henry and M. Conlin, “Too Much of a Good Incentive?” Business Week,
March 4, 2002, pp. 38–39.