REPUTATION IN THE CREATION OF VALUE FOR STAKEHOLDERS

Patrizia Gazzola () and Mella Piero ()
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Mella Piero: University of Pavia, Department of Economics and Business

Annals of Faculty of Economics, 2015, vol. 1, issue 2, 27-36

Abstract: This study aims to describe ways of identifying the principles of responsible management that allow a more meaningful understanding of the behavior of modern corporations. This helps to grow the reputation of the firm. Sometimes the legal, business and reputation risks are great for companies engaging in practices deemed unacceptable. Socially responsible behaviors can increase a company's value in that they can increase the degree of confidence of the various stakeholders and the level of reputation. The analysis of the international literature will be accompanied by the results obtained from empirical research about the reputation of the Italian companies. The firm’s needs to consider and satisfy in a balanced way the needs and interests of all stakeholders had already been amply highlighted by economists belonging to the behaviorist school. In this sense the creation of value, a typical goal of stockholders, should be considered in the process of optimizing an objective function that is larger and more complex, resulting from a "political compromise" regarding the aims of the different classes of stakeholders. In particular, this function must be compatible with the needs of the external environment, taking into account the influence of cultural roots in a context of Corporate Social Responsibility (CSR). The presence of conflicting interests, both inside and outside of the company, creates the possibility for conflicts between groups; profit depends on the extent to which these groups are satisfied with the conflicting interests and with how internal and external conflict resolution takes place. This deep integration between the interests of shareholders and those of other stakeholders occurs when the company assumes an increasingly important role, particularly in local communities in support of the social and occupational context, while also indicating the increasingly strong influence of the corporate image and reputation, which inevitably reflects the choices of investors and consumers above all, as well as those of all other stakeholders.

Keywords: Corporate Social Responsibility; Creation of Value; Reputatio; Stakeholder (search for similar items in EconPapers)
JEL-codes: M14 M16 (search for similar items in EconPapers)
Date: 2015
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