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Stakeholders' Expectations of Board Roles: The Case of Subsidiary Boards

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  • Morten Huse
  • Violina Rindova

Abstract

What is the best for acompany? In most countries it isconsidered to be a duty for board membersto act in the best interest of thecompany. Few, however, question ``who orwhat really counts'' in the boards'governance decisions, and that boards mayplay various roles in carrying out theirduties. In this paper we review anddiscuss stakeholder expectations of boardroles. The arguments are illustrated by anempirical example. Depending on thedefinition of what is the best for thecompany, key stakeholder groups may havedifferent expectations of various boardroles. Copyright Kluwer Academic Publishers 2001

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  • Morten Huse & Violina Rindova, 2001. "Stakeholders' Expectations of Board Roles: The Case of Subsidiary Boards," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 5(2), pages 153-178, June.
    • Handle: RePEc:kap:jmgtgv:v:5:y:2001:i:2:p:153-178
    DOI: 10.1023/A:1013017909067
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    2. Reinhard Steurer, 2006. "Mapping stakeholder theory anew: from the ‘stakeholder theory of the firm’ to three perspectives on business–society relations," Business Strategy and the Environment, Wiley Blackwell, vol. 15(1), pages 55-69, January.
    3. Elena Merino & Montserrat Manzaneque & Yolanda Ramírez, 2019. "Value-added distribution to stakeholder of Spanish listed companies: a corporate governance perspective," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(3), pages 577-604, September.
    4. Carl Åberg & Mariateresa Torchia, 2020. "Do boards of directors foster strategic change? A dynamic managerial capabilities perspective," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 24(3), pages 655-684, September.
    5. Sonia Boukattaya & Zied Ftiti & Nouha Ben Arfa & Abdelwahed Omri, 2022. "Financial performance under board gender diversity: The mediating effect of corporate social practices," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1871-1883, September.
    6. Mahoney, Joseph & Asher, Cheryl Carleton & Mahoney, James, 2004. "Towards a Property Rights Foundation for a Stakeholder Theory of the Firm," Working Papers 04-0116, University of Illinois at Urbana-Champaign, College of Business.
    7. Timo Tremml & Sabine Löbbe & Andreas Kuckertz, 2022. "Board behavior’s impact on entrepreneurial orientation in public enterprises," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(4), pages 1183-1211, December.
    8. Kallifatides, Markus & Petrelius Karlberg, Pernilla, 2012. "What makes for a value-creating corporate board? A literature synthesis and suggestions for research," SSE/EFI Working Paper Series in Business Administration 2012:1, Stockholm School of Economics, revised 25 Jun 2013.
    9. Jibriel Elsayih & Rina Datt & Qingliang Tang & Ali Hamid & Maria Estela Varua, 2023. "Exploring the determinants of carbon management system quality: The role of corporate governance and climate risks and opportunities," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(4), pages 4065-4091, December.
    10. Alessandro Carretta & Vincenzo Farina & Paola Schwizer, 2010. "Assessing effectiveness and compliance of banking boards," Journal of Financial Regulation and Compliance, Emerald Group Publishing Limited, vol. 18(4), pages 356-369, November.
    11. Walid Ben‐Amar & Claude Francoeur & Sylvain Marsat & Aida Sijamic Wahid, 2021. "How do firms achieve corporate social performance? An integrated perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(3), pages 1078-1090, May.
    12. Dolgopyatova, Tatiana & Libman, Alexander & Yakovlev, Andrei, 2018. "Unintended Benefits of Empowering Boards in Conglomerates: A Case Study of AFK Sistema," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 23(2), pages 177-202.
    13. Giovanna Michelon & Antonio Parbonetti, 2012. "The effect of corporate governance on sustainability disclosure," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(3), pages 477-509, August.
    14. Morten Huse, 2003. "Renewing Management and Governance: New Paradigms of Governance?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 7(3), pages 211-221, September.
    15. Åberg, Carl & Bankewitz, Max & Knockaert, Mirjam, 2019. "Service tasks of board of directors: A literature review and research agenda in an era of new governance practices," European Management Journal, Elsevier, vol. 37(5), pages 648-663.
    16. Ming Jia & Li Tong & P. V. Viswanath & Zhe Zhang, 2016. "Word Power: The Impact of Negative Media Coverage on Disciplining Corporate Pollution," Journal of Business Ethics, Springer, vol. 138(3), pages 437-458, October.
    17. Linda Höglund & Maria Mårtensson & Aswo Safari, 2018. "Expectations and the performance of governance functions between a board, management and other stakeholders: the case of Robotdalen," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 22(4), pages 805-827, December.
    18. Laura Padilla-Angulo, 2020. "The impact of board diversity on strategic change: a stakeholder perspective," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 24(4), pages 927-952, December.
    19. Sadi Boĝaç Kanadlı & Max Bankewitz & Pingying Zhang, 2018. "Job-related diversity: the comprehensiveness and speed of board decision-making processes—an upper echelons approach," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 22(2), pages 427-456, June.
    20. Low, Daniel C.M. & Roberts, Helen & Whiting, Rosalind H., 2015. "Board gender diversity and firm performance: Empirical evidence from Hong Kong, South Korea, Malaysia and Singapore," Pacific-Basin Finance Journal, Elsevier, vol. 35(PA), pages 381-401.
    21. Francisco Bravo, 2018. "Does board diversity matter in the disclosure process? An analysis of the association between diversity and the disclosure of information on risks," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 15(2), pages 104-114, May.

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