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Corporate Governance and Social Responsibility - Coggle Diagram
Corporate Governance
and
Social Responsibility
Corporate Social Responsibility
contrast profit maximization
Suggest a set of actions beneficial for stakeholder
Based on self-governance (External legal and regulatory mechanism)
Stakeholders
employees of the company
bondholders who own company-issued debt
owners and shareholders
customers who may rely on the company to
provide a particular good or service
Corporate Governance is concerned with balancing economic and social goals and between individual and communal goals.
Shareholders
Have the right to exercise vote and to affect the management of a company
can sell their stock and buy different stock; they
do not have a long-term need for the company
Can be individual, company, or institution that
owns at least one share of the company
A shareholder might be an individual investor
Owners of the company, but they are not liable for the company debts
For private companies, sole proprietorships, and partnerships the owners are responsible for their obligations
Corporate social responsibility is concerned with treating the firm's stakeholders ethically or in a socially responsible manner.
Corporate Governance
Related to profit maximization
Protection for the provided capital to the firm
the broadest control mechanism within which a company
CSR Disclosure
CSR disclosure can be defined as the information that a company discloses about its environmental impact and its relationship with its stakeholders through relevant communication channels
Annual General Meeting (AGM)
An annual general meeting (AGM) is a mandatory yearly gathering of a company's interested stakeholders.
Ratification of the director's actions
Financial statements
Minutes of the previous meeting
Election of the board of directors