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SMMC G6 [CS-4], G6 group members - Coggle Diagram
SMMC G6 [CS-4]
core areas
Corporate social responsibility
The Pyramid of Corporate Social Responsibility
Legal Responsibilities
laws and regulations are societyˊs codified ethics
Ethical Responsibilities
do what is right, just and fair
Philanthropic Responsibilities
corporate citizenship
Economic Responsibilities
gain and sustain competitive advantage
shared value-creation framework
expand internal firm value chains and by including more non-traditional partners like NGOs
focus on creating new regional clusters
expand customer base and bring in non-consumers
Modern corporations' mechanisms of governance
represents the relationships among the stakeholders that is used to determine and control the strategic direction and performance of the organization
agency costs
the agent=manager
will the agent act in the interest of the principal?
How to reduce the agency cost?
monitoring costs
the principal can monitor the agent's behavior more
enforcement cost
penalties for non-compliance
incentive costs
provide the agent with more incentives
the principal=shareholders
Example
Franchisor-franchisee relationship
the public firm
Characteristics
transferability of investor interest: the owners of stock can buy and sell stock
legal personality
limited liability for investors
separation of ownership and control
Nexus with stakeholders
External stakeholders
Customers
Suppliers
Governments
Unions
Communities
General public
Internal stakeholders
Managers
Shareholders
Bondholders
Employees
Board members
Mechanisms of Corporate Governance
institutions of capitalism
meaning
can lessen the problem of the separation of shareholder ownership and the risk bearing principals
types
Takeovers（the market for corporate control）
recruitment of executives from outside the firm
monitoring by boards of directors
compensation heavily weighted towards stock options
debt（minimize free cash flow）
separate Chairperson and the CEO
internal control of Multidivisional
board of directors
general stratigic oversight and guidence
selecting, evaluating and compensating the CEO
overseeing CEO succession plans
providing guidance on executives and their compensation
reviewing, monitoring and approving the strategic initiatives
conducting a risk assessment and mitigating
ensuring a firm's audited financial statements
ensuring a firm's compliance with the laws and regulations
Recent Developments
Central Challenges
over-emphasis on shareholders and their interests
over-emphasis on measurable short-term financial metrics
Response
Broaden mission
sustainability goals
Performance measurement systems that exceeds short-term targets
social responsibility
Ecosystem strategies
Especially platform
interaction create value
consciously think about all the stakeholders
Meaning
An economic community supported by a foundation of interacting organizations and individuals
protection
stay private
no pressures of the public financial markets.
Dual-Class Share Structure
voting rights are closely held by a core group
poison pill
difficult for shareholders to replace the company's management.
G6 group members
張奕葶 Tiffany
林侑萱 Rita
蔡怡萍 Nico
林楷 Kyle
馮品璇 Debby
韓鎵尉 Ivy