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Financializing Stakeholder Claims

Andrew Crane1; Cameron Graham1; Darlene Himick2

1 York University · 2 University of Ottawa

Journal of Management Studies 2015

ABSTRACTThis paper examines the role of accounting in assigning financial values to stakeholder claims. Stakeholder theorists have called for metrics managers can use to coordinate stakeholder claims. We argue that accounting already serves as the dominant example of such a tool, and that its role in measuring and representing stakeholder claims, and how those representations are used by stakeholders and managers, is not well understood. We suggest that accounting financializes stakeholder claims along three inductively‐developed dimensions, namely time, security, and priority. We analyse the case of pension accounting at General Electric to theorize concerning how these dimensions shape stakeholder claims and are used by stakeholders and managers to trade‐off claims, demarcate claimants into groups, and reconstruct claims during negotiations.

DOI
10.1111/joms.12147
Volume
52 (7)
Pages
878-906
Language
en
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