A Model of Long-Term Value Creation

Forthcoming in Journal of Sustainable Finance & Investment

26 Pages Posted: 20 Apr 2021

See all articles by Lars Kurznack

Lars Kurznack

affiliation not provided to SSRN

Dirk Schoenmaker

Rotterdam School of Management, Erasmus University; Erasmus Research Institute of Management (ERIM); Centre for Economic Policy Research (CEPR)

Willem Schramade

RSM Erasmus University; Sustainable Finance Factory

Date Written: April 19, 2021

Abstract

Companies need to rethink the way they create value and grow their business to thrive in tomorrow’s volatile and uncertain business environment. Companies in virtually every industry are being impacted by new disruptive and complex societal trends, such as climate change, energy transition and social inequality. At the same time, companies are increasingly evaluated on their non-financial performance and they ever more compete on speed and sustainability.

Still, only a few companies have begun to invent new strategic directions, pioneering strategies focused on creating long-term value, not just for shareholders but for all stakeholders. A playbook on how to create long-term value is currently lacking, making it difficult for companies to capture the opportunities and mitigate the risks created by these societal trends.

This paper develops a model of long-term value creation that supports companies in creating long-term value and setting their strategies accordingly. Financial institutions can draw on the model to assess how future proof their investment and/or lending portfolios are.

Keywords: corporate strategy, sustainability, transition, financial capital, human capital, social capital, natural capital

JEL Classification: G31, G34, L11, L21

Suggested Citation

Kurznack, Lars and Schoenmaker, Dirk and Schramade, Willem, A Model of Long-Term Value Creation (April 19, 2021). Forthcoming in Journal of Sustainable Finance & Investment, Available at SSRN: https://ssrn.com/abstract=3829778 or http://dx.doi.org/10.2139/ssrn.3829778

Lars Kurznack

affiliation not provided to SSRN

Dirk Schoenmaker (Contact Author)

Rotterdam School of Management, Erasmus University ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam
Netherlands

HOME PAGE: http://www.rsm.nl/people/dirk-schoenmaker/

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Willem Schramade

RSM Erasmus University ( email )

P.O. Box 1738
Room T09-53
3000 DR Rotterdam
Netherlands

Sustainable Finance Factory ( email )

18
Rotterdam, 3034 SG
0682011037 (Phone)

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