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Constantijn van Aartsen
Value Creation and the Role of Firms in Society
Value Creation and the Role of Firms in Society
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- More about Value Creation and the Role of Firms in Society
It is widely agreed by proponents of shareholder and stakeholder capitalism that firms are needed to create long-term value. While they debate whose interests this value creation should serve and how it should be measured, they rarely question the concept of value itself or whether firms should have this social role. This consensus is striking since the meaning of value is often unexplored and inadequately defined. This Element addresses that gap and challenges this consensus. It explores the nature and meaning of value, examines how value creation became the social role of firms, and asks whether firms should have this social role. It shows that the role of firms is not to create economic value for shareholders or stakeholders but to provide goods and services in ways that are consistent with social values. The analysis also offers a new, relational theory of the firm to help enable this paradigm shift.
- Publication date: 31 August 2026
- Page count: 75
- Publisher: Cambridge University Press
- Format: Paperback
- ISBN-13: 9781009839921
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