Maximizing Stakeholders' Interests: An Empirical Analysis Of The Stakeholder Approach To Corporate Governance
The purpose of the present paper is to help bring some advances in the characterization of the emerging stakeholder model of corporate governance. The authors demonstrate this by analyzing CSR function at board level, board diversity and stakeholder engagement and by examining its relationship with financial performance. Based on an empirical study of an international sample of large companies, they found board responsibility for CSR to be a key factor in promoting engagement with primary and secondary stakeholders of the firm. Depending on the legal tradition of the country where the company is based, they also found evidence that board diversity and stakeholder engagement are positively related to firm financial performance.