A Practitioner Critique of a Conceptual Paper on Measuring Value and Performance

21 Pages Posted: 7 Apr 2015

See all articles by Andrew Wicks

Andrew Wicks

University of Virginia - Darden School of Business

Jeffrey S. Harrison

University of Richmond - E. Claiborne Robins School of Business

Date Written: April 6, 2015

Abstract

Much of the business literature suggests that firm performance should be measured in financial terms, based on the notion that the primary obligation of a corporation is to provide high shareholder returns. An alternative literature is emerging in which scholars identify the many weaknesses associated with shareholder primacy, and offer alternative performance measures that are focused on a broader set of stakeholders. One such publication was provided to high-level executives in large companies. The executives were then given the opportunity to critique the paper and to discuss the extent to which their firms are engaging in the types of performance measurement activities contained therein. This paper is a direct response to the need to engage practitioners in useful dialogues about stakeholder theory within the academic community.

Keywords: stakeholder theory, stakeholder practice, performance measurement, corporate practice, business practice, practitioners, happiness, shareholder primacy, executive interviews, Home Depot, Unum Group, Luck Companies, McKinsey & Company, MeadWestvaco, SunTrust Banks

JEL Classification: D23, D63, J41, L21, M12, M52

Suggested Citation

Wicks, Andrew and Harrison, Jeffrey S., A Practitioner Critique of a Conceptual Paper on Measuring Value and Performance (April 6, 2015). Available at SSRN: https://ssrn.com/abstract=2590795 or http://dx.doi.org/10.2139/ssrn.2590795

Andrew Wicks

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://www.darden.virginia.edu/faculty/wicks.htm

Jeffrey S. Harrison (Contact Author)

University of Richmond - E. Claiborne Robins School of Business ( email )

Richmond, VA 23173
United States

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