Value creation, appropriation, and distribution

The following article places emphasis on value creation as well as its appropriation and distribution and how firms affect economic inequality within society. Value is an important component to how firms create wealth. The interaction of government, households and firms even in a global context affects how wealth is created. Firms can contribute to social economic inequality through their practices and this paper focuses on other aspects of value that also affect the global value chain. This is a varied take which essentially places emphasis on how firms contribute to socio-economic inequality and other factors affecting the different aspects of value in the chain.

The motivations behind a firm’s operations are varied and are meant to show just how significant it can be when corporate governance is not effectively established. Firms are limited by the laws of the lands in which they operate and when interests such as wealth maximization compete with value distribution then internal machinations can upend the established order. It is a way in which firms can negatively contribute to socio-economic inequality and enhance the disparities witnessed. Many firms operate on their interests which means that laws and corporate governance play a major role in ensuring that this does not interfere with the rest of society. In a global context is doubly important.

The article effectively provides clarity on the impact of the firm while showing how corporate governance has a major role in deciding the way value will move within the global value chain. It allows for a review of the firm and how laws can come into play to balance out any socio-economic aspects that these firms interfere with.

Bapuji, H., Husted, B. W., Lu, J., & Mir, R. (2018). Value creation, appropriation, and distribution: How firms contribute to societal economic inequality. Business &     Society, 57(6), 983-1009. Retrieved from: http://www.freemanagementresources.com