A measure of the evolution of the company?s orientation toward its primary stakeholders

• Type: Article in International Scientific Journal
• Date: 2022-12

Authors

Carlos Alves (Author) FEP

Journal

Title: Finance Research Letters

Vol. 50

ISSN: 1544-6123

Publisher: Elsevier

Indexing

ISI Web of Knowledge - 3 Citations

Scopus - 3 Citations

Other information

Authenticus ID: P-00W-ZPK

DOI: 10.1016/j.frl.2022.103215

Abstract (EN): In recent years, many have argued for a greater orientation of companies toward defending the interests of their various stakeholders, and many firms have proclaimed their adherence to stakeholder capitalism. However, there is not a single measure that can objectively quantify the orientation of companies. This paper proposes metrics to capture the evolution of the primary stakeholder focus. An empirical application to ESG-rated European companies concludes that, in 2013-2021, companies seemed to move toward a greater focus on shareholders' interests to the detriment of a greater co-determination with employees' interests. Covid19 and the social capital of companies have attenuated this orientation.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 7