Integrated Approach to Measure Returns to Employees as Stakeholders: A Conceptual Framework

Abstract

Stakeholder Primacy has been gaining importance over the years. The shift from Shareholder Primacy to Stakeholder Primacy is rooted in the creation and the

distribution of value by the respective firms and also in its fair distribution among relevant stakeholders. Employees have been identified as one of the important stakeholders of the firm.However, from employees’ perspective, issues related to protection of income during economic crisis and redundancies, fairness of returns, wellbeing of employees’ family members, involvement in decisions that impact the interests of employees, comparison of respective employers with other firms in terms of best practices to ensure fair returns to employees over and above the rewards and compensation become important in determining and measuring returns to employees as stakeholders.An integrated approach to measure the returns to employees as stakeholders is deemed necessary especially in times of uncertainty and ambiguity. In this paper, we propose a Conceptual Framework to Measure the Returns to Employees as Stakeholders which involves Protection, Partnership, Prosperity, and Position as Cornerstones of Measurement emanating from the Purpose of the firm.