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Corporate Governance in the Context of Crises: Towards a Stakeholder Theory of Crisis Management
Author(s) -
Alpaslan Can M.,
Green Sandy E.,
Mitroff Ian I.
Publication year - 2009
Publication title -
journal of contingencies and crisis management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.007
H-Index - 51
eISSN - 1468-5973
pISSN - 0966-0879
DOI - 10.1111/j.1468-5973.2009.00555.x
Subject(s) - stakeholder , corporate governance , crisis management , stakeholder theory , context (archaeology) , shareholder value , stakeholder management , business , shareholder , value (mathematics) , stakeholder analysis , financial crisis , public relations , economics , political science , management , finance , computer science , paleontology , biology , macroeconomics , machine learning
In this paper, we take a step towards developing a stakeholder theory of crisis management. We argue that, in the context of crises, adopting the principles of a stakeholder model of corporate governance will lead companies to engage more frequently in proactive and/or accommodating crisis management behaviour even if these crisis management behaviours are not perceived to maximize shareholder value. We also propose a mechanism that may explain why the stakeholder model may be associated with more successful crisis management outcomes. We conclude by challenging the efficacy of the shareholder view in crisis and crisis‐like situations, and call for further theoretical and empirical research.