TY - JOUR
T1 - Designing Social Value Architecture for the For-Profit Company
AU - Liao, Carol
N1 - Copyright - Copyright Canadian Review of Social Policy 2012; Document feature - ; Last updated - 2023-11-21; SubjectsTermNotLitGenreText - Canada; United States--US; United Kingdom--UK
PY - 2012
Y1 - 2012
N2 - For-profit companies are typically excluded from analyses of the social economy, and with good reason. The concept of shareholder primacy is deeply rooted within the modern corporation's organizational design -- pursuing anything other than shareholder wealth is tantamount to bad governance (Berle & Means, 1932). Social gains that occur as a result of corporate actions are always ancillary or subordinate to the primary goal of profit-making. In order for businesses to effectively embed social value creation in their architecture, it is vital that company directors be permitted to consider stakeholder interests in corporate decision making. In this context, stakeholders are defined as constituents other than shareholders, including end-users, clients, customers, employees, suppliers, and creditors, as well as the broader community and environment.
AB - For-profit companies are typically excluded from analyses of the social economy, and with good reason. The concept of shareholder primacy is deeply rooted within the modern corporation's organizational design -- pursuing anything other than shareholder wealth is tantamount to bad governance (Berle & Means, 1932). Social gains that occur as a result of corporate actions are always ancillary or subordinate to the primary goal of profit-making. In order for businesses to effectively embed social value creation in their architecture, it is vital that company directors be permitted to consider stakeholder interests in corporate decision making. In this context, stakeholders are defined as constituents other than shareholders, including end-users, clients, customers, employees, suppliers, and creditors, as well as the broader community and environment.
KW - Social Services And Welfare
KW - Social value
KW - Shareholder primacy
KW - Corporate social responsibility
KW - Corporate governance
KW - Profit
KW - Social policy
KW - Corporate profits
KW - Architecture
KW - Directors
KW - Social responsibility
KW - Stakeholders
KW - Limited liability companies
KW - Carbon footprint
KW - Canada
KW - United Kingdom--UK
KW - United States--US
M3 - Article
SP - 85
EP - 88
JO - Canadian Review of Social Policy
JF - Canadian Review of Social Policy
IS - 67
ER -