Abstract:

The current debate in corporate governance is about the fundamental purpose of business, shareholder value maximization versus meeting stakeholder claims. Proponents of the value maximization principle say that a firm exists to maximize shareholder value. Proponents of the stakeholder theory say that a firm exists to satisfy the claims of its all stakeholders. The concept of corporate directing describes the integrative process of governing and leading in action, i.e. the enacting of directors’ roles both individually and collectively. It is a relational concept, only known and brought about through other people, and includes all aspects of directors’ symbolic actions. Pfeffer (1981) described management as symbolic action: it is argued here that directing is symbolic (en)acting. However, there are several tensions underlying this concept, which will be outlined in this discussion.