Vol. 3, Issue 7, Part Q (2017)

Abstract
A successful performance measure evaluates how well an organization performs in relation to its objectives. Since the primary objective of commercial organizations is normally assumed to be the maximization of the wealth of its shareholders, it follows that performance measures should evaluate this. According to the theory of stakeholders and corporate social responsibility the objective of the company is to deliver value to all stakeholders, not just shareholders. Hence the need for disclosure of information about the value added generated for all stakeholders. The purpose of this paper is exactly to address this need for change by presenting a relational view of the firm, based on the strategic value of the linkages with stakeholders, and its implication in terms of corporate performance evaluation and reporting systems.