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CS4 - Coggle Diagram
CS4
Corporate responsibility
social responsibility
the highest level of bloom's taxonomy
managers' responsibilities
economic
legal
keep economic interest but also follow the rules
firms can do well by doing good CSR
corporate governance
reduce agency cost
monitoring costs
establish principals that can monitor the agent's behavior more
enforcement cost
penalties for non-compliance ones
incentive costs
provide the agent with more incentives
relationships among the stakeholders
control strategic direction
agency costs
shareholders
managers
The manager doesn't act in the best interest of the shareholder.