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Corporate Governance and Corporate Social Responsibility - Coggle Diagram
Corporate Governance and Corporate Social Responsibility
Corporate Governance
Protection for the provided capital of the firm
related to profit
maximization
concerned with balancing economic and social goals and between individual and
communal goals
The broadest control mechanism within which a company
Stakeholders
Customers who may rely on the company to provide a particular good or service.
Suppliers and vendors who may depend on the company to provide a consistent revenue stream.
Bondholders who own company-issued debt
Although shareholders may be the largest type of stakeholders, because shareholders are affected directly by a company's performance, it has become more common place for other groups to be considered stakeholders.
Employees of the company
Bound to the company for the long-term and reasons of greater need.
Owners and shareholders
Corporate Social Responsibility
Suggest a set of actions beneficial for external stakeholder
is concerned with treating the firm's stakeholders ethically or in a socially responsible manner.
Contrast profit
maximization
Fused into companies Corporate Governance Practices
Focus in ethical business practices
Directly affect an organization's performance
Results in better image of an organization
Based on self-governance (external legal and regulatory mechanisms)
Shareholders
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.
Have the right to exercise vote and to affect the management of a company.
A shareholder might be an individual investor.
Can be individual, company, or institution that owns at least one share of the company.
Can sell their stock and buy different stock; they do not have a long-term need for the company.