VALUE-BASED MANAGEMENT, LONG TERM SUSTAINABILITY AND CORPORATE SOCIAL RESPONSIBILITY

Today’s companies, especially large multinationals, are supposed to be financially successful in accordance with the shareholders’ expectations, to operate in compliance with the requirements of sustainable development, taking into account the interests of future generations, as well as to act in a socially responsible manner, serving the interests of key stakeholders, including the interests of the community. In such circumstances, managers are expected to create enough value to satisfy all these interests. The adoption of Value-Based Management (VBM) approach has contributed to a better understanding of shareholders and managers and the alignment of their interests. In this paper, we analyze the compatibility of VBM with the requirements of other stakeholders, including the requirements regarding sustainability and corporate social responsibility. In this context, it could be said that a broader concept of VBM further enhances the interest-based logic behind the corporations’ functioning, but at the same time it enables the integration of the requirements related to sustainability and corporate social responsibility.