In 1986, Rappaport published the book "Creating Shareholder Value", in which he described the shareholder value (SV) approach as a new standard for business performance. A quantitative, corporate ethical philosophy is addressed with the term "shareholder value", which has always been a matter of course for business investment theorists. Basically, shareholder value describes the mathematical maximization of the net present value of investments.
This entrepreneurial approach was not viewed with skepticism on a global scale until the banking and financial crisis. An alternative approach was examined to overcome the banking and economic crisis. The corporate social responsibility (CSR) approach emerged, which was seen as a sustainable and pluralistic alternative.
However, the CSR approach is viewed critically from a business perspective. It is questioned to what extent CSR actually influences on the economic success of a company. This will also be the subject of this essay. The aim is to show whether linking CSR and the SV approach creates a corporate strategy that generates monetary gains and represents a perfect fit.
Inhaltsverzeichnis (Table of Contents)
- 1. Introduction
- 2. Corporate Social Responsibility
- 3. Shareholder Value
- 3.1 Criticism of the shareholder value approach.
- 3.2 Reasons for linking the SV approach and the CSR concept to a business strategy.
- 4. The link between corporate social responsibility and shareholder value
- 5. Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This essay aims to explore the relationship between Corporate Social Responsibility (CSR) and Shareholder Value (SV) and whether combining these two approaches can create a successful corporate strategy. The essay will analyze the criticisms of the shareholder value approach and examine the arguments for linking SV and CSR to achieve both financial gains and sustainable business practices.
- Shareholder Value Approach
- Corporate Social Responsibility
- Criticism of Shareholder Value
- Benefits of Combining SV and CSR
- Sustainable Business Strategies
Zusammenfassung der Kapitel (Chapter Summaries)
The introduction of the essay sets the context by discussing the emergence of the shareholder value approach and its subsequent challenges during the banking and financial crisis. This leads to the introduction of the corporate social responsibility approach as a possible alternative.
Chapter 2 will delve into the concept of corporate social responsibility, its various dimensions, and its significance in contemporary business practices.
Chapter 3 will focus on the shareholder value approach, discussing its core principles, its criticisms, and its implications for corporate decision-making.
Chapter 4 will examine the potential link between CSR and SV, exploring arguments for and against integrating these two approaches into a unified business strategy.
Schlüsselwörter (Keywords)
The key terms and focus areas of this essay include corporate social responsibility, shareholder value, sustainable business practices, ethical business strategies, financial gains, criticism of the shareholder value approach, and the potential for integration between these two concepts to create a successful corporate strategy.
- Quote paper
- Anastazia Spajic (Author), 2021, Corporate Social Responsibility and Shareholder Value. A Perfect Fit?, Munich, GRIN Verlag, https://www.grin.com/document/1119112
