Cover Image

Value-based management with corporate social responsibility /

Main Author: Martin, John D., 1945-
Other Authors: Petty, J. William,, Wallace, James S., Martin, John D.,
Format: Book
Language:English
Published: Oxford : Oxford University Press, 2009.
Edition:2nd ed.
Series:Financial management association survey and synthesis series
Subjects:
Value analysis (Cost control)
Industrial management
Table of Contents:
  • Part I: Value-Based Management, Corporate Social Responsibility, and the Purpose of the Corporation
  • 1 The Purpose of a Corporation
  • Adam Smith and the Invisible Hand
  • A Stakeholder Perspective
  • Value(s)-Based Management: A Middle Ground
  • Summary: Creating Firm Value—Think Value(s)-Based Management
  • Appendix 1A: John Mackey and Milton Friedman on the Goal of the Firm
  • 2 The Elements of Value-Based Management
  • Wealth Creation Is Not Universal
  • The Proper Design of a V[sub(s)]BM Program
  • Alternative Valuation Paradigms: Earnings versus Discounted Cash Flow
  • Connecting Business Strategies with the Creation of Firm Value
  • Summary
  • 3 The Need to Measure What You Want to Manage
  • The Need for a Single Metric
  • Total Shareholder Return
  • Total Market Value
  • Accounting-Based Metrics
  • Think Economic Profits, Not Accounting Profits
  • Summary
  • Appendix 3A: Accounting versus Economic ROIC
  • Appendix 3B: More Problems with Accounting-Based Metrics
  • Part II: The Finer Details of Value-Based Management and Corporate Social Responsibility
  • 4 Free Cash-Flow Valuation: The Foundation of Value-Based Management
  • The Beginning for Value-Based Management: Free Cash Flows
  • Free Cash Flow and Firm Valuation
  • Determining the Discount Rate
  • The Value Drivers: Digging Deeper
  • Summary
  • 5 Pick a Name, Any Name: Economic Profit, Residual Income, or Economic Value Added
  • The Fundamental Concept: Residual Income or Economic Profits
  • A Comparison of the Residual Income and Free Cash Flow Approaches
  • “Fine-Tuning” Residual Income with EVA
  • More Than a Financial Exercise
  • Summary
  • Appendix 5A: The Equivalence of the Residual Income and Discounted Dividends Valuation Approaches
  • Appendix 5B: An Illustration of the Computation of EVA
  • Appendix 5C: Performance Evaluation Using CFROI
  • 6 Corporate Social Responsibility: Putting the S in Value(s)-Based Management
  • The Moral Argument for CSR
  • The Economic Argument for CSR
  • CSR within a VBM Framework: The Academic Evidence
  • Driving the Value Drivers
  • Summary
  • Part III: VBM Applications
  • 7 Project Evaluation Using the New Metrics
  • Example Capital Investment Project
  • Traditional Measures of Project Value
  • Using EVA to Evaluate Project Value Creation
  • Fixing the Problem
  • Unequal Cash Flows and Positive NPV
  • Summary
  • Appendix 7A: The Equivalence of MVA and NPV
  • 8 Incentive Compensation: What You Measure and Reward Is What Gets Done
  • All-Too-Common Mistakes
  • Creating a Culture of Ownership
  • Determining a Firm’s Compensation Policy
  • Single-Period Performance Measures and Managerial Incentives
  • Managerial Decision Horizon and the Use of EVA
  • Extending Managerial Horizons
  • How Should Employee Compensation Be Structured?
  • Fairness as an Additional Characteristic of a Firm’s Compensation Policy
  • Summary
  • Appendix 8A: Whole Foods Market Executive Compensation Discussion and Analysis
  • Part IV: Lessons We Have Learned
  • 9 Lessons Learned
  • VBM Studies Based on Archival Data
  • VBM Studies Based on Survey Data
  • More Recent Survey Evidence
  • Current CSR Research
  • Summary
  • Epilogue: Where We Are Now

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