Limits of Shareholder Value to Achieving Global Sustainability

It is often argued that sustainability and shareholder value are not in conflict with each other but that the goal of sustainable development is in line with the goal of maximizing shareholder value. Using our sustainable value approach we show that corporate sustainability performance can be measured in monetary terms, that sustainability and shareholder value can be in line, but that there is no unambiguous link between the two. Using our database of sustainable value calculations, we give examples of companies that create shareholder value and contribute positively to sustainable development as well as of companies that create shareholder value at the expense of sustainable development. This chapter both provides a methodological approach and makes an empirical contribution to the theory of sustainable development.