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

See all articles by Anant K. Sundaram

Anant K. Sundaram

Tuck School of Business at Dartmouth

Andrew C. Inkpen

Thunderbird School of Management

Abstract

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

Sundaram, Anant K. and Inkpen, Andrew, Stakeholder Theory and the Corporate Objective Revisited: A Reply. Organization Science, Vol. 15, No. 3, pp. 370-371, May-June 2004, Available at SSRN: https://ssrn.com/abstract=593502

Anant K. Sundaram (Contact Author)

Tuck School of Business at Dartmouth ( email )

100 Tuck Hall
Hanover, NH 03755
United States
603-646-8248 (Phone)
603-646-1308 (Fax)

Andrew Inkpen

Thunderbird School of Management ( email )

15249 N 59th Ave.
Glendale, AZ 85306
United States

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