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MMCG1 [CS-4] Stakeholders and Governance, member - Coggle Diagram
MMC
G1
[CS-4] Stakeholders and Governance
Recent Developments
Problems
over-emphasis on shareholders and their interests
How do modern companies do?
set the goal of being carbon neutral in their operations
Ex. in response to the climate crisis
adopted performance measurement systems
Ex. balanced scorecard that go beyond short-term financial or accounting metrics
related to customers, operations, and the organization in addition to financial metrics
pay attention to long run impacts
through sustainability goals
Ex. the company's actions
explicitly broaden their mission
Ex. corporate social responsibility and sustainability goals.
putting shareholders on notice that they are going to pay attention to a set of other stakeholders
over emphasis on measurable
short-term financial metrics
Ecosystem strategies or
Ecosystem thinking in business
view firms as members of a business ecosystem comprising of various interacting organizations and individuals.
ex: suppliers and complementors,
government entities and customers
cooperation and partnership are especially important for the long-run success of companies.
interact with each other on their
platform in order to create value
how to attract them
how to keep them committed
how to balance their different interests and goals
how to ensure that the ecosystem as a whole
continues to provide value and outcompete others
introduced by James Moore
supported by a foundation interacting organizations and individuals
protection from shareholders
poison pill provisions 股東權益計畫
make it difficult and costly for shareholders to
replace the company's management.
private equity私募股權
stay private
unicorns
two classes of shares
the voting rights are closely held by a core group
serve as the guardians of the long-term
interests of the company
act in good faith to protect these
long-term interests
Public Firms and Their Role in Society
stakeholders
external stakeholders
we often use the shorthand that the goal of managers is to
maximize returns for shareholders
internal stakeholders
publicly traded corporation
public stock company
transferability of investor interests
owners of stock can buy and sell stock
legal personality
the board of directors is responsible for all of the
stakeholders in the corporation
limited liability for investors
separation of ownership and control
the residual claim in this call the, shareholder
managers have control
the hierarchical nature of a
publicly traded company
state charter
shareholders
board of directors
management
1 more item...
problems in all types of organization
different countries they each also have their own corporate laws within each of those countries
separation of ownership and control and agency problems
managers acting in their own self-interests
collecting lots of revenue and
trying to move up their stock price
get more bonuses and things
who are the stakeholders
Mechanisms of Corporate Governance
Agency Problem
Monitoring by institutional investors
Debt(minimize free cash flow)
Compensation heavily weighted toward stock options
Separate Chairperson and CEO
Monitoring by boards of directors
Internal control of Multidivisional
Recruitment of executives from outside the firm
Takeovers
Board of Directors
Inside and outside directors
ensuring that the firm's audited financial
statements are done correctly.
General strategic oversight and guidance
Corporate Governance around the world
Difference in national and culture "Free" market economies?
State-directed capitalism(less freedom) e.g., China
Free market capitalism(more freedom) e.g., U.S.
Germany
Stakeholder capitalism
France
Stakeholder capitalism
China
State-owned enterprises
Corporate Social Responsibility
The pyramid of Corporate Social Responsibility
Ethical Responsibility
Do what is right, just and fair
Legal Responsibility
obey the law and regulations
Philanthropic Responsibility
Be a good global corporate citizen
Economic Responsibility
Gain and sustain competitive advantages
businesses tend to do more than just making profits in today society
does CSR help to build a competitive advantage?
depend on business locations
value creation framework
expand internal value chains of firm by corporate with more non-traditional partner such as NGOs
focusing on creating new regional clusters
how to definition your customers and how to bring in non-consumers
Corporate governance
Agency Costs
monitoring costs
enforcement costs
individual financial losses from stakeholders
incentive costs
occur by manager does not act in the best interest of the shareholder
definition
the relationship among the stakeholders that is used to determine and control the strategic direction and performance of the organization
Agency Theory
the relationship among shareholders,managers,and hierarchies
firms need to design new strategies or missions from work
view the firm as a nexus of legal contracts
member
Jim 謝融俊
Jason 簡翔軒
Oscar 胡醒嵐
Raymond 吳閎睿
Antonio 蔡承佑
Frank 魏瑋慶