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Maximizing stakeholders' interests: An empirical analysis of the stakeholder approach to corporate governance

Author

Listed:
  • Ayuso, Silvia

    (IESE Business School)

  • Rodriguez, Miguel A.

    (IESE Business School)

  • Garcia, Roberto

    (IESE Business School)

  • Ariño, Miguel A.

    (IESE Business School)

Abstract

The purpose of this paper is to build on the emerging stakeholder model of corporate governance by analyzing the CSR function at board level, board diversity, and stakeholder engagement, and how it relates to financial performance. Based on an empirical study of an international sample of large companies, we find board responsibility for CSR to be a key factor in promoting engagement with primary and secondary stakeholders of the firm. Depending on the legal tradition of the country in which the company is based, we find evidence that board diversity and stakeholder engagement are positively correlated with firm financial performance.

Suggested Citation

  • Ayuso, Silvia & Rodriguez, Miguel A. & Garcia, Roberto & Ariño, Miguel A., 2007. "Maximizing stakeholders' interests: An empirical analysis of the stakeholder approach to corporate governance," IESE Research Papers D/670, IESE Business School.
    • Handle: RePEc:ebg:iesewp:d-0670
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    File URL: http://www.iese.edu/research/pdfs/DI-0670-E.pdf
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    References listed on IDEAS

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    Cited by:

    1. Ayuso, Silvia & Argandoña, Antonio, 2007. "Responsible corporate governance: Towards a stakeholder board of directors?," IESE Research Papers D/701, IESE Business School.
    2. Matthew Cartabuke & James W. Westerman & Jacqueline Z. Bergman & Brian G. Whitaker & Jennifer Westerman & Rafik I. Beekun, 2019. "Empathy as an Antecedent of Social Justice Attitudes and Perceptions," Journal of Business Ethics, Springer, vol. 157(3), pages 605-615, July.
    3. S. J. Chang, 2016. "Sustainable Evolution for Global Business: A Synthetic Review of the Literature," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 6(1), pages 1-23, March.
    4. Bruna Marinangeli, 2012. "Orientamento allo stakeholder engagement e performance economiche nelle aziende bancarie: un?analisi empirica," ECONOMIA E DIRITTO DEL TERZIARIO, FrancoAngeli Editore, vol. 2012(3), pages 319-335.

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    Keywords

    Corporate governance; corporate social responsibility; board diversity; stakeholder engagement; firm performance;
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