Value Creation and Firm Performance: Theory, Practice, and Empirical Inquiry of A New Direction in Stakeholder Theory

During this seminar Andy will present his research on stakeholder theory and value creation. He will argue that that the notion of value has been overly simplified and narrowed to focus on economic returns. Stakeholder theory provides an appropriate lens for considering a more complex perspective of the value that stakeholders seek as well as new ways to measure it. Andy and his co-author Jeff Harrison (University of Richmond) develop a four-factor perspective for defining value that includes, but extends beyond, the economic value stakeholders seek. To highlight its distinctiveness, they compare this perspective to three other popular performance perspectives. The stakeholder perspective on value that they offer draws attention to those factors that are most closely associated with building more value for stakeholders, and in so doing, allows academics to better measure it and enhances managerial ability to create it.

During this seminar, Andy will not only talk about this paper but he will also discuss some of his other recent work that extends these ideas - including a qualitative project with executives about value creation, and a study on stakeholder theory and self-determination. This discussion will serve as a spring-board to talk about directions for future research in the field of ethics and strategy. 

Biography
Andrew Wicks is the Ruffin Professor of Business Administration at Darden School of Business, University of Virginia. His research interests include stakeholder responsibility, stakeholder theory, trust, ethics, and entrepreneurship. He has published over 30 journal articles, and his work has appeared in journals such as Academy of Management Review, Academy of Management Journal, Business Ethics Quarterly, Journal of Management, and Organization Science. He has also co-authored 4 books, including the recently released Public Trust in Business (Cambridge University Press, July 2014). He is the Director of The Olsson Center for Applied Ethics, the Director of the Darden Doctoral Program, and an Academic Advisor for the Business Roundtable Institute for Practical Ethics.