Sustainable Organizations

48 Pages Posted: 21 Oct 2022 Last revised: 9 Dec 2022

See all articles by Thomas Geelen

Thomas Geelen

Copenhagen Business School - Department of Finance; Danish Finance Institute

Jakub Hajda

HEC Montreal - Department of Finance

Jan Starmans

Department of Finance, Stockholm School of Economics

Date Written: December 9, 2022

Abstract

We develop a theory of sustainability-driven stakeholder governance to study how stakeholders with pro-social preferences influence organizations' sustainability—their social outcomes. While stronger pro-social preferences render a stakeholder's project choice more sustainable and increase her incentives to control it, other stakeholders respond by limiting her control rights when conflicts of interest become too severe. This response can lead to an overall decline in organizations' sustainability even when stakeholders become more pro-social.

Keywords: Sustainability, ESG, stakeholders, delegation of authority, corporate governance.

JEL Classification: D23, G30, L20, Q56.

Suggested Citation

Geelen, Thomas and Hajda, Jakub and Starmans, Jan, Sustainable Organizations (December 9, 2022). Available at SSRN: https://ssrn.com/abstract=4242137 or http://dx.doi.org/10.2139/ssrn.4242137

Thomas Geelen

Copenhagen Business School - Department of Finance

Solbjerg Plads 3
Copenhagen, Frederiksberg 2000
Denmark

Danish Finance Institute ( email )

Jakub Hajda

HEC Montreal - Department of Finance ( email )

3000 Chemin de la Cote-Sainte-Catherine
Montreal, Quebec H3T 2A7
Canada

Jan Starmans (Contact Author)

Department of Finance, Stockholm School of Economics ( email )

Drottninggatan 98
Stockholm, 111 60
Sweden
+46 8 736 9181 (Phone)

HOME PAGE: http://sites.google.com/site/janstarmans11/

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
96
Abstract Views
420
Rank
408,290
PlumX Metrics