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

Marco G.D. Guidi, Joe Hillier, Heather Tarbert

    Research output: Contribution to journalArticlepeer-review

    10 Citations (Scopus)

    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.

    Original languageEnglish
    JournalCritical Perspectives on Accounting
    DOIs
    Publication statusPublished - 1 Jul 2008

    Keywords

    • ethics
    • business decisions

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