Strategic Philanthropy and Maximization of Shareholder Investment through Ethical and Values-Based Leadership in a Post Enron/Anderson Debacle

Author(s)

M. Hopeton
Bahaudin G. Mujtaba, Nova Southeastern UniversityFollow

ORCID

Bahaudin Mujtaba0000-0003-1615-3100

Document Type

Article

Publication Title

Journal of Business Studies Quarterly

ISSN

2152-1034

Publication Date

1-1-2010

Abstract/Excerpt

This paper discusses the relationship between strategic philanthropy and the maximization of shareholder value. It highlights such key concepts as ethics, values, corporate social responsibility (CSR), corporate social performance (CSP), corporate financial performance (CFP), organization citizenship and strategic philanthropy. It is posited that unethical behavior by firms result in three levels of costs that can ultimately leads to the firm’s demise. Finally, reflections and discussions are provided to assess if there is an optimal level of strategic philanthropy for maximizing shareholder value. The conclusion is that increasing shareholder wealth is positively correlated to CSR and that a firm’s investment in CSR is a function of the collective ethics and value set of the firm’s leaders and followers.

Volume

1

Issue

4

First Page

94

Last Page

109

NSUWorks Citation

Hopeton, M. and Mujtaba, Bahaudin G., "Strategic Philanthropy and Maximization of Shareholder Investment through Ethical and Values-Based Leadership in a Post Enron/Anderson Debacle" (2010). HCBE Faculty Articles. 352.
https://nsuworks.nova.edu/hcbe_facarticles/352