Skip to main navigation menu Skip to main content Skip to site footer

New Imperative of Corporate Value Creation in Face of the Challenges of Sustainable Development

Abstract

Objective: The aim of the article is to present and exemplify the mechanisms of changes in defining and influencing the new imperative of corporate value creation. It is implied by the impact of the sustainable development concept.

Research Design & Methods: The research focused on the concept of corporate value creation in the context of the challenges connected to sustainable development. In the article, both inductive and deductive ways of reasoning were adopted, which makes it possible to combine the results of the detailed research.

Findings: The publication indicates the emerging need for a change in the manner of perceiving and thinking about values – ‘from grasping value for today – towards the value of the future.’ This is related to the need to formulate the new imperative of corporate value creation.

Implications & Recommendations: The reasonable profit concept can also be the basis for the formulation of the postulate of ‘reasonable speed of corporate value creation.’ Therefore, there is a need to redefine the existing imperative of corporate value creation and implement a new imperative based on the idea of the responsibility for the existence and long-term development of the enterprise.

Contribution & Value Added: The result is the disclosure of the emergence of a hybrid concept of sustainable value-based management. The added value of this article is the proposal to create a new imperative of corporate value creation based on the foundation of the restitution of the idea of responsibility.

Keywords

theory of development, sustainable development, corporate value creation, value-based management, sustainable value-based management

PDF

Author Biography

Andrzej Jaki

Department of Economics and Organization of Enterprises in Cracow Univeristy of Economics, prof. UEK dr hab.

Barbara Siuta-Tokarska

Department of Economics and Organization of Enterprises Cracow Univeristy of Economics, prof. UEK dr hab.


References

  1. Bauman, Z. (2000). Liquid Modernity. Cambridge: Polity Press.
  2. Bettencourt, L.M.A., & Kaur, J. (2011). Evolution and structure of sustainability science. Proceedings of the National Academy of Sciences of the United States of America, 108(49), 19,540-19,545.
  3. Biddle, C., & Schafft, K.A. (2015). Axiology and Anomaly in the Practice of Mixed Methods Work Pragmatism, Valuation, and the Transformative Paradigm. Journal of Mixed Methods Research, 9(4), 320-334. https://doi.org/10.1177/1558689814533157
  4. Biedenbach, T. (2016). The open secret of values: the roles of values in axiology in project research. Project Management Journal, 47(3), 139-155. https://doi.org/10.1177/875697281604700312
  5. Black, A.P., Wright, P., & Bachman, J.E. (1998). In Search of Shareholder Value: Managing the Drives of Performance. London: Pitman Publishing.
  6. Borowiecki, R., & Siuta-Tokarska, B. (2018). Nauki o zarządzaniu w świetle paradygmatów. Przegląd Organizacji, 4, 7-15.
  7. Borys, T. (2011). Zrównoważony rozwój – jak rozpoznać ład zintegrowany?. Problemy Ekorozwoju
  8. (2), 75-81.
  9. Cairns, R.D., & Martinet, V. (2014). An environmental-economic measure of sustainable development. European Economic Review, 69, 4-17. https://doi.org/10.1016/j.euroecorev.2014.03.001
  10. Copeland, T., Koller, T., & Murrin, J. (1990). Valuation: Measuring and Managing the Value of Companies. 1st Edition, New York: John Wiley & Sons Inc.
  11. Cornelius, P., & Kogut, B.M. (2003). Corporate Governance and Capital Flows in a Global Economy. New York: Oxford University Press.
  12. Dahl, A.L. (2012). Achievements and gaps in indicators for sustainability. Ecological Indicators, 17, 14-19. https://doi.org/10.1016/j.ecolind.2011.04.032
  13. Dobrescu, M., Hristache, D., & Iacob, S. (2012). Recent theoretical progress in economics and its impact on economic policy. Procedia – Social and Behavioral Sciences, 62, 562-565.
  14. Dhahri, S., & Omri, A. (2018). Entrepreneurship contribution to the three pillars of sustainable development: What does the evidence really say?. World Development, 106, 64-77. https://doi.org/10.1016/j.worlddev.2018.01.008
  15. Egelston, A.E. (2013). Sustainable Development. A History. New York-London: Springer.
  16. Ehrbar, A. (1998). EVA – The Real Key to Creating Wealth. New York: John Wiley & Sons Inc.
  17. Ellerman, D. (2004). Revisiting Hirschman on Development Assistance and Unbalanced Growth. Eastern Economic Journal, 30(2), 311-331.
  18. Gabrusewicz, T., & Przybylska-Kapuścińska, W. (2013). Wartość w zrównoważonym rozwoju. Nauki o Finansach, 4(17), 55-62.
  19. Gray, R.H. (2006). Social, environmental and sustainability reporting and organisational value creation: Whose value? Whose creation?. Accounting, Auditing & Accountability Journal, 19(6), 793-819. https://doi.org/10.1108/09513570610709872
  20. Hak, T., Janoušková, S., & Moldan, B. (2016). Sustainable development goals: a need for relevant indicators. Ecological Indicators, 60, 565-573. https://doi.org/10.1016/j.ecolind.2015.08.003
  21. Hartman, R.S. (2011). The structure of value: Foundations of Scientific axiology. Eugene: Wipf and Stock Publishers.
  22. Hopwood, B., Mellor, M., & O’Brien, G. (2005). Sustainable development: mapping different approaches. Sustainable Development, 13, 38-52.
  23. Igwe, P.A., Icha-Ituma, A., & Madichie, N.O. (2018). An Evaluation of CSR and Social Value Practices Among UK Commercial and Social Enterprises. Entrepreneurial Business and Economics Review, 6(1), 37-52, https://doi.org/10.15678/EBER.2018.060102
  24. Ikemefuna, A. (2016). International Entrepreneurship Theory: Past, Present and Way
  25. Forward, Entrepreneurial Business and Economics Review 4(4), 93-103, https://doi.org/10.15678/EBER.2016.040406
  26. Kattel, R., Kregel, J.A., & Reinert, E.S. (2009). The Relevance of Ragnar Nurkse and Classical Development Economics. Working Papers in Technology Governance and Economic Dynamics, 21, 1-34.
  27. Knight, J.A. (1998). Value Based Management: Developing a Systematic Approach to Creating Shareholder Value. New York: McGraw-Hill.
  28. Kolodko, G.W. (2017). New Pragmatism: In the Quest for Economics and Development Policy in the 21th Century. Journal of Management and Business Administration. Central Europe, 25(2),
  29. -5. https://doi.org/10.7206/jmba.ce.2450-7814.192
  30. Kreickemeier, U., & Wrona, J. (2017). Industrialisation and the Big Push in a Global Economy. Dϋsseldorf Institute for Competition Economics. Discussion Paper, 249, 1-25.
  31. Lortie, M., Nadeau, S., & Vezeau, S. (2016). Holistic sustainable development: Floor-layers and micro-enterprises. Applied Ergonomics, 57, 8-16. https://doi.org/10.1016/j.apergo.2016.01.017
  32. Martin, J.D., & Petty, J.W. (2000). Value Based Management: The Corporate Response to the Shareholder Revolution. Boston: Harvard Business School Press.
  33. Martin, J.D., Petty, J.W., & Wallace, J.S. (2009). Value Based Management with Corporate Social Responsibility. New York: Oxford University Press.
  34. Mayfield, J. (1997). Economic Value Management. The Route to Shareholder Value. Management Accounting, 75(8), 32-33.
  35. McTaggart, J.M., Kontes, P.W., & Mankins, M.C. (1994). The Value Imperative. Managing for Superior Shareholder Returns. New York: The Free Press.
  36. Miller, J.H., Greaney, M.D., & Brohawn, D.K. (Eds.) (1994). Curing World Poverty: The Role of Property. New York: Social Justice Review.
  37. Moldavska, A., & Welo, T. (2019). A Holistic approach to corporate sustainability assessment: Incorporating sustainable development goals into sustainable manufacturing performance evaluation. Journal of Manufacturing Systems, 50, 53-68. https://doi.org/10.1016/j.jmsy.2018.11.004
  38. Moratis, L., & Melissen, F. (2019). How do the sustainable development goals question rather than inform corporate sustainability?. Resources, Conservation and Recycling, 141, 253-254.
  39. Narmania, D. (2018). Economic Policy Uncertainty and Risk Management in Regulated Sectors. International Journal of Business and General Management, 7(4), 19-28.
  40. Nilsson, M., Griggs, D., & Visbeck, M. (2016). Policy: map the interactions between Sustainable Development Goals. Nature, 534, 320-322. https://doi.org/10.1038/534320a
  41. Olawumi, T.O., & Chan, D.W.M. (2018). A scientrometric review of global research on sustainability and sustainable development. Journal of Cleaner Production, 183, 231-250. https://doi.org/10.1016/j.jclepro.2018.02.162
  42. Ostrom, E. (2015). Governing the commons. The evolution of institutions for collective action. Cambridge: Cambridge University Press.
  43. Palea, V. (2018). Financial reporting for sustainable development: Critical insights into IFRS implementation in the European Union. Accounting Forum, 42(3), 248-260. https://doi.org/10.1016/j.accfor.2018.08.001
  44. Piątek, Z. (2007). Przyrodnicze i społeczno-historyczne warunki równoważenia ładu ludzkiego świata. Problemy Ekorozwoju, 2(2), 5-18.
  45. Porter, M.E., & Kramer, M.R. (2001). The Big Idea: Creating Shared Value. Harvard Business Review, 1, 62-77.
  46. Pulgarín, A., Eklund, P., Garrote, R., & Escalona-Fernández, M.I. (2015). Evolution and Structure of Sustainable Development: A Bibliometric Study. Brazilian Journal of Information Scienc, 9(1).
  47. Rappaport, A. (1986). Creating Shareholder Value. The New Standard for Business Performance. New York: The Free Press.
  48. Reichmann, M. (2016). Creative Accounting and Electoral Motives: Evidence from OECD Countries. Journal of Comparative Economics, 44(2), 243-257. https://doi.org/10.1016/j.jce.2015.07.001
  49. Ricardo, D. (2001). On The Principles of Political Economy and Taxation. Ontario: Batoche Books, Kitchner.
  50. Say, J.B. (2001). A Treatise on Political Economy; or the Production, Distribution, and Consumption of Wealth. Ontario: Batoche Books, Kitchner.
  51. Sinakou, E., Boeve-de Pauw, J., Goossens, M., & Van Petegem, P. (2018). Academics in the Field of Education for Sustainable Development: Their Conceptions of Sustainable Development. Journal of Cleaner Production, 184, 321-332.
  52. Siva, V., Gremyr, I., Bergquist, B., Garvare, R., Zobel, T., & Isaksson, R. (2016). The support of Quality Management to sustainable development: a literature review. Journal of Cleaner Production, 138(2), 148-157.
  53. Smith, A. (2007). An Inquiry into the Nature and Causes of the Wealth of Nations. Amsterdam – Lausanne – Melbourne – Milan – New York – Sao Paulo: MetaLibri.
  54. Smith, P. (2009). Shareholder Value Implementation: Turning Promise into Reality, L.E.K. Consulting Executive Insights, IV(1), 1-7.
  55. Solivetti, L.M. (2005). W.W. Rostow and His Contribution to Development Studies: A Note. The Journal of Development Studies, 41(4), 719-724. https://doi.org/10.1080/00220380500092903
  56. Starovic, D., Cooper, S., & Davis, M. (2004). Maximising Shareholder Value. Achieving clarity in decision-making. London: CIMA.
  57. Steward, III, G.B. (1991). The Quest for Value. A Guide for Senior Managers. New York: Harper Business.
  58. Stockhammer, E. (2013). Financialization and the Global Economy. In M.H. Wolfson & G.H. Epstein, (Eds.), The Political Economy of Financial Crises. New York: Oxford University Press.
  59. Szejnwald-Brown, H., de Jong, M., & Levy, D.L. (2008). Building institutions based on information disclosure: lessons from GRI’s sustainability reporting. Journal of Cleaner Production, 17, 571-580. https://doi.org/10.1016/j.jclepro.2008.12.009
  60. Tarquinio, S., Raucci, D., & Benedetti, R. (2018). An Investigation of Global Reporting Initiative Performance Indicators in Corporate Sustainability Reports: Greek, Italian and Spanish Evidence. Sustanaibility, 10, 1-19.
  61. Tischner, J. (2002). Thinking in Value., Cracow: Polish Publishing House ‘Znak.’
  62. Walker, P.A. (2009). From ‘tragedy’ to commons: How Hardin’s mistake might save the world. Journal of Natural Resources Policy Research, 1(3), 283-286. https://doi.org/10.1080/19390450903040520
  63. Wang, X., & Piesse, J. (2009). Economic Development and Surplus Labour: A Critical Review of the Lewis Model. BWPI Working Paper, 89, 1-32.
  64. Young, S.D., & O’Byrne, S.F. (2001). EVA and Value-Based Management. A Practical Guide to Implementation. New York: McGraw-Hill.

Downloads

Download data is not yet available.

Similar Articles

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 > >> 

You may also start an advanced similarity search for this article.