A broader corporate purpose? Evidence from UK public companies, 2000-2016

Abstract

This paper examines the extent to which corporate leaders have discursively embraced the logic of stakeholder theory. Using textual analysis of chairperson and CEO letters to shareholders of FTSE 350 companies during the 2000-2016 period, we find that, over time, attention to shareholders declined and attention to customers, society and CSR increased. These shifts were more pronounced during the financial crisis. Chairpersons and CEOs also appear to exhibit different loci of attention. We discuss the implications of our findings for corporate governance and debates about the purpose of the corporation.

Keywords: Corporate purpose, stakeholder theory, attention to goals and stakeholders

JEL Classification: L21