Stakeholder Theory and the Corporate Objective Revisited: A Reply
Organization Science, Vol. 15, No. 3, pp. 370-371, May-June 2004
Posted: 21 Sep 2004
Freeman et al. (2004) offer a spirited rebuttal to our paper The Corporate Objective Revisited from the perspective of stakeholder theory. However, they fall short in making a case against the logic of shareholder value maximization. The authors confound issues of value and values, ignore the rich history of scholarship on related questions, and perhaps misinterpret some of our core arguments. Most importantly, proponents of stakeholder views such as Freeman et al. appear to be unable to go beyond critiques of the shareholder view by failing to offer an empirically supportable alternative theory.
Keywords: Shareholder value, stakeholder theory, corporate goal, corporate governance
JEL Classification: G3, K22, L21
Suggested Citation: Suggested Citation