Value Creation, Appropriation, and Distribution: How Firms Contribute to Societal Economic Inequality
By Hari Bapuji, Bryan W. Husted, J. Lu, R. Mir. Business & Society, 2018
112 citations recorded by the source corpus.
Firms are central to wealth creation and distribution, but their role in economic inequality in a society remains poorly studied. In this essay, we define and distinguish value distribution from value creation and value appropriation. We identify four value distribution mechanisms that firms engage in and argue that shareholder wealth maximization approach skews the value distribution toward shareholders and top executives, which in turn contributes to rising economic inequalities around the world. We call on organizational scholars to study the value distribution role of firms and its consequences for society, and introduce the articles in this volume of the special issue on economic inequality, business, and society.
Subfields: Business and International Management, Management of Technology and Innovation, Organizational Behavior and Human Resource Management
View Paper: https://www.semanticscholar.org/paper/514219132f256842020caf81e706c86b52029e21
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In Business and International Management
In Management of Technology and Innovation
In Organizational Behavior and Human Resource Management
Citations in the corpus
- Organizations and Societal Economic Inequality: A Review and Way Forward (2020, background): “Furthermore, firms also adopt a share buyback strategy to indirectly reward shareholders and resort to cash holding to enable future distribution to shareholders, while reducing distribution to other current stakeholders (Bapuji et al., 2018; Lazonick & O’Sullivan, 2000; Lin, 2016).”