Value Based Management with Corporate Social Responsibility (Financial Management Association Survey and Synthesis) by John D. Martin, J. William Petty, James S. Wallace -- Read -- Imperial Library of Trantor

Index

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

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 Notes References Index

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