Shareholder value, stakeholder management, and social issues: What's the bottom line?

Amy J. Hillman, Gerald D. Keim

Research output: Contribution to journalArticlepeer-review

2300 Scopus citations


We test the relationship between shareholder value, stakeholder management, and social issue participation. Building better relations with primary stakeholders like employees, customers, suppliers, and communities could lead to increased sharenolder wealth by helping firms develop intangible, valuable assets which can be sources of competitive advantage. On the other hand, using corporate resources for social issues not related to primary stakeholders may not create value for shareholders. We test these propositions with data from S&P 500 firms and find evidence that stakeholder management leads to improved shareholder value, while social issue participation is negatively associated with shareholder value.

Original languageEnglish (US)
Pages (from-to)125-139
Number of pages15
JournalStrategic Management Journal
Issue number2
StatePublished - Feb 2001
Externally publishedYes


  • Market value added
  • Shareholder value
  • Social issues
  • Stakeholder management

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management


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