A Single Value Function for Evaluating Organizations with Multiple Constituencies

A unique social value function of organizational effectiveness is logically possible if the evaluation of outcomes is based not on the preferences of constituents but, instead, on the relationship among organizational outcomes.The implication is that the values of outcomes are determined by the interstructuring of human actions over time.This result is theoretically important.It implies that constituent preferences are not necessary for evaluating the outcomes of organizations.It thus is possible to assess organizational effectiveness independently, for comparison with assessments based on preferences.