Stakeholder Value Creation: Comparing ESG and Value Added in European Companies

In recent years, a renewed interest in value creation for stakeholders has been witnessed different contexts. Different tools have proposed to try grasp and measure such value(s) but, many cases, the main perspective remains that of shareholders. To contribute field research aims discuss novel ways thinking about measurement, this paper addresses relationship between ESG (Environmental, Social, Governance) ratings Value Added, as proxies distribution stakeholders. particular, we consider whether are able capture companies characterized by their capacity generating higher Added Our analysis uses frontier methodology combined with means comparison. Data from 2018 were downloaded EIKON, all within Euro zone sectors (1932 companies, which 399 held an rating, compared 1533 without analysis). reveals that, although is theoretically considered good social responsibility proxy, indices cannot be used indicator rather, must only one components. This implies need review limitations establish relevant not suitable use universal or absolute decision-making.