Abstract
AbstractBy accounting for stakeholders' conflicting values, in this study, we argue that the conceptualization of stakeholder value trade‐offs can theoretically explain how stakeholder‐oriented managers can make value‐based decisions in pursuit of long‐term value creation for all stakeholders. Specifically, drawing on prospect theory and the value trade‐offs framework, we develop a value‐based decision‐making perspective when organizations manage for their stakeholders. Our framework encompasses four types of trade‐offs: taboo, routine, virtuous, and tragic each plays an important role in the value‐creating decision process. This interdisciplinary study proposes that managers should ground their value‐based decisions on the extent to which the chosen trade‐offs are morally justifiable. The study contributes to the current understanding of relationships between organizations and stakeholders from a decision‐making perspective.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Business Ethics, the Environment & Responsibility
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
