A critical approach to the stakeholder theory as a corporate objectivefunction

  • Alexandre Di Miceli da Silveira USP; FEA
  • Claudia Emiko Yoshinaga USP; FEA
  • Paulo da Rocha Ferreira Borba USP; FEA
Keywords: shareholder theory, stakeholder theory, corporate governance, management models, corporate objective-function

Abstract

At the core of the issue of management models on corporate governance are some basic questions such as these that must be addressed. What is the corporate-function? Which are the criteria for decision-making and performance evaluation? Literature cites two corporate objective-functions which stand out, one which maximizes shareholder value and the other which balances the interests of stakeholders. A critical approach to the stakeholder theory is made including the origin, concepts, advantages and disadvantages in a comparison to that of the shareholders. The conceptual deficiencies of the stakeholder theory point to the maximization of the shareholder value as a more robust objective-function for achieving a higher level of social welfare, maximization of corporate efficiency and productivity while providing a better evaluation of managers.

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Published
2005-03-01
How to Cite
Silveira, A., Yoshinaga, C., & Borba, P. (2005). A critical approach to the stakeholder theory as a corporate objectivefunction . REGE Revista De Gestão, 12(1), 33-42. https://doi.org/10.5700/issn.2177-8736.rege.2005.36508
Section
Finanças