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
Pages (from-to)603-619
Number of pages17
JournalCritical Perspectives on Accounting
Volume19
Issue number5
Publication statusPublished - 5 Jul 2008
Externally publishedYes

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