ABSTRACT
In 2019, the Business Roundtable—a professional association of CEOs from American companies—updated their “Statement on the Purpose of a Corporation,” proposing that organizations have responsibilities to generate value for all stakeholders—including customers, employees, suppliers, and communities—in addition to those with a direct financial investment. This chapter begins to unpack the complexity around stakeholder value by exploring this statement, which first outlined the position of commitment to nonfinancial value creation across stakeholder groups. The chapter discusses how alternative conceptualizations of organizational value and performance may impact entrepreneurs at various stages in the venture creation cycle, emphasizing how nonfinancial measures of performance should be considered and interwoven into the earliest visions of a new venture. Finally, the chapter outlines future directions for research and suggests ways in which scientists and organizations can work together to build a robust body of work advancing theory and practice in this area.
