In recent years the problems created by shareholder value as a principle of corporate governance became topic of broad discussions. This thesis tries to answer the question if corporate culture could be able to prevent the problems and risks that emerge by shareholder value. In a first step the concepts of shareholder value and corporate culture are analyzed and defined in detail. For the purpose of this thesis the phenomenon of value is explained as sustainable long-term profit for investors. Secondly, the problems of shareholder value as a principle of corporate governance is examined and it is shown that the main issue in this context is the lack of mutual trust between interest groups within corporations and the moral dilemma resulting from this.
Thereafter by comparing corporate culture in different countries it is demonstrated that the German approach in corporate culture is the most convenient in order to create mutual trust. Nevertheless the results of this thesis yield that corporate culture has to be developed over time and cannot be introduced a priori by imposing a new corporate identity. In order to create a strong corporate culture which could solve the moral dilemma an environment of mutual trust between employees, executive officers and shareholders has to be established.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Shareholder value
- History of shareholder value
- Main points of critique
- Analysis of the concept
- Value-investing
- Corporate executives - transgressors or pursued?
- The Enron-case
- Shareholder value - a mistaken principle?
- Corporate culture
- Corporate culture as solution to the dilemma
- Differences between countries
- German corporate culture as key to sustainability?
- Common objectives as fundament of corporate culture
- Can classical corporate culture be re-established?
- Comparison: corporate culture - corporate identity
- Which kind of value gets created?
- Limitations of models
- Corporate culture
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This thesis examines the potential of corporate culture to mitigate or prevent problems arising from the shareholder value approach in corporate governance. It aims to provide a comprehensive analysis of both shareholder value and corporate culture, defining them in detail and exploring their limitations as models. The key themes explored are:- The evolution and critiques of the shareholder value model
- The role of corporate culture in fostering trust and resolving moral dilemmas
- Comparative analysis of corporate cultures in different countries, particularly focusing on the German approach
- The importance of long-term value creation and sustainable profit for investors
- The limitations of models in scientific research and the ongoing debate surrounding their usefulness
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: Introduces the topic of shareholder value and its potential problems. Poses the central question of whether corporate culture can offer a solution to these issues.
- Shareholder value: Provides a historical overview of shareholder value, outlining its main points of critique and analyzing its core concepts. Explores value-investing and the moral dilemmas faced by corporate executives in the context of shareholder value maximization.
- Shareholder value - a mistaken principle?: Examines the potential flaws of shareholder value as a principle of corporate governance. This chapter focuses on the role of corporate culture in mitigating these issues, particularly through its ability to foster trust and cooperation between different stakeholders.
- Corporate culture: This chapter delves deeper into corporate culture, exploring its potential as a solution to the challenges posed by shareholder value. It examines differences in corporate culture between countries, particularly highlighting the German approach, and analyzes the role of shared objectives in building a strong and sustainable culture. This chapter also explores the challenges of re-establishing traditional corporate culture and compares corporate culture with corporate identity.
Schlüsselwörter (Keywords)
This thesis focuses on key concepts such as shareholder value, corporate culture, corporate governance, stakeholder value, trust, moral dilemmas, and sustainable profit. It draws upon comparative analysis of corporate cultures in different countries, with particular attention to the German approach. The discussion also highlights the limitations of models and the ongoing debate surrounding their usefulness in scientific research.- Quote paper
- Michael Frei (Author), 2012, Does Shareholder Value Require a Revival of Corporate Culture?, Munich, GRIN Verlag, https://www.grin.com/document/230772
