The ethics of shareholder value: duty, rights and football

Nordberg, Donald (2011) The ethics of shareholder value: duty, rights and football. Working Paper. University of Westminster.


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How does a board of directors decide what is right? The contest over this question is frequently framed as a debate between shareholder value and stakeholder rights, between a utilitarian view of the ethics of corporate governance and a deontological one. This paper uses a case study with special circumstances that allow us to examine the conflict between shareholder value and other bases on which a board can act. In the autumn of 2010 the board of Liverpool Football Club sold the company to another investing group against the wishes of the owners. The analysis suggests the board saw more than one type of utility on which to base its decision and that one version resonated with perceived duties to stakeholders. This alignment of outcomes of strategic value with duties contrasted with the utility of shareholder value. While there are reasons to be cautious in generalizing, the case further suggests reasons why boards may reject shareholder value in opposition to mainstream notions of corporate governance, without rejecting utility as a base of their decisions.

Item Type: Monograph (Working Paper)
Additional Information: WORKING PAPER 11-3 Online ISBN: 9781908440020
Subjects: University of Westminster > Westminster Business School
Depositing User: Users 1295 not found.
Date Deposited: 07 Jun 2012 13:56
Last Modified: 07 Jun 2012 14:43

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