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SMMCG10[CS-4] Stakeholders and Governance , G10 members, Aja , I’m mM…

- - - - governments
      - unions
      - suppliers
      - communities
      - customers
      - general public
    - - shareholders
        
        maximize returns for shareholders
      - bondholders
      - managers
      - employees
      - board members
    - - transferability of investor interest
      - legal personality
      - limited liability for investors
      - separation of ownership and control
      - the hierarchical of authority
        
        management
        
        shareholders
        
        employees
        
        state charter
        
        strategic management
        
        managerial actions
        
        financial crisis
        
        global financial crisis
        
        real estate bubble burst
        
        accounting scandals
        
        ethical business
        
        bottom line is important and needed
        
        stakeholder
        
        who
        
        be affected or affect the corporation
        
        interests and claims
        
        different aspects
        
        benefit
        
        try to balance
        
        economic, legal, ethical, and philanthropic responsibilities
        
        effectively address the stakeholder concerns
        
        board of directors
- - - - Shareholders and ROE
      - Measurable short-term financial metrics
    - - Broadening the mission
        
        Sustainability
        
        EX：Carbon-neutral
        
        Balanced scorecard
        
        Holistic, health assessment for company
        
        Financial, customers, operations, organizational
        
        CSR
        
        From shareholders to stakeholders
  - - - EX：Platform Economies(Youtube, Coursera...)
      - Create value for stakeholders and long-run success for the company
  - - - Poison pill
    - - Causing more "Unicorns"
- - - - 4.Compensation heavily weighted toward stock option
        
        get better performance in terms of compensation to the managers
        
        if you're an institutional investor
        
        the shares are so small in the company
        
        not worth time and effort to monitor
        
        have a large amount of investments in the organization
        
        may monitor very closely
      - 5.Monitoring by institutional investors
        
        Investors invest heavily, so monitor closely
      - 3.Monitoring by boards of directors
        
        in charge of evaluating the CEO and top management team of the company
        
        a mechanism for reducing agency costs
      - Debt
        
        Be efficient and not to be wasteful
        
        To insure free cashflow
        
        For the next investment
      - 2.Recruitment of executives from outside the firm
        
        the good performance
        
        as a signal of their quality
      - 7.Seperate chairperson and CEO or not
        
        Yes, to insure board of directors could effective monitor the CEO
        
        Minimize agency costs
        
        grocery business
        
        No, to make decisions quickly
        
        Need to solve agency cost problem
        
        high technology
      - 1.Takeovers
        
        the market for corporate control
        
        if they don't keep the stock price at a certain level
        
        poor management
      - 8.Internal control of multidivisional
        
        Each division competes with each other
        
        Each manager cares about the profitability metrics
- - - - ensure the pursuit of strategic goal
        
        to minimize the agency cost
      - address the principal-agent problem
      - mechanisms to direct and control a firm
    - - accounting scandal
      - global financial crisis
    - - views a firm as nexus of legal contracts
        
        legal rights to employees and customers
      - relationships among shareholders, managers,and hierarchies
    - - adverse selection
        
        misrepresentation of a job
        
        beyond one's ability to do things
      - moral hazard
        
        difficulty to ascertain whether the agent gives one's best
  - - - Laws and regulations are society's codified ethics; define minimum acceptable standard
    - - Do what is right, just and fair
    - - To gain and sustain competitive advantage
    - - Corporate citizenship