Corporate Governance in the Context of Crises: Towards a Stakeholder Theory of Crisis Management

In this paper, we take a step towards developing a stakeholder theory of crisis management. We argue that, in the context of crises, adopting the principles of a stakeholder model of corporate governance will lead companies to engage more frequently in proactive and/or accommodating crisis management behaviour even if these crisis management behaviours are not perceived to maximize shareholder value. We also propose a mechanism that may explain why the stakeholder model may be associated with more successful crisis management outcomes. We conclude by challenging the efficacy of the shareholder view in crisis and crisis‐like situations, and call for further theoretical and empirical research.