Stakeholder Approach to Value-Based Management

Abstract

Author: Irina V. Ivashkovskaya National Research University The Higher School of Economics iivashkovskaja@hse.ru

This paper presents the  original model  for integrated value based management derived from  the principle of value creation for both - strategic financial and nonfinancial stakeholders.We show that stakeholder value creation assumes positive economic profit stream for non-financial stakeholders.The model requires the integration of management and corporate governance levels. The former is consistent with the proposed stakeholder value based management model ( STVM), the latter is described by proposed new governance model, namely stakeholder’s value based corporate governance ( STVG). The third component of integrated model is related to the strategic value reporting.