Maximizing the firm's value to society through ethical business decisions: incorporating 'moral debt' claims

Guidi, M.G.D. , Hillier, J. and Tarbert, H. (2008) Maximizing the firm's value to society through ethical business decisions: incorporating 'moral debt' claims. Critical Perspectives on Accounting, 19(5), pp. 603-619. (doi: 10.1016/j.cpa.2007.01.003)

Abstract

We argue that all three forms of justice (economic, legal, distributive) require to be incorporated into the firm's business decisions in order to protect stakeholders’ alienable and inalienable rights. In addition, the firm has ‘moral debt’ obligations which require to be distributed fairly amongst all stakeholders. We develop a model that demonstrates that just distribution of stakeholders’ ‘moral debt’ and residual claims leads to the maximization of the firm's value to society in the long-run.

• Item Type: Articles
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Guidi, Dr Marco
• Authors: Guidi, M.G.D., Hillier, J., and Tarbert, H.
• Subjects: H Social Sciences > HB Economic Theory; H Social Sciences > HF Commerce > HF5601 Accounting
• College/School: College of Social Sciences > Adam Smith Business School > Accounting and Finance
• Journal Name: Critical Perspectives on Accounting
• ISSN: 1045-2354
• Published Online: 06 February 2007