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CORPORATE GOVERNANCE AND CORPORATE SOCIAL RESPONSIBILITY, Coste, Drinlynne…
CORPORATE GOVERNANCE AND CORPORATE SOCIAL RESPONSIBILITY
Stakeholder vs Shareholder
There are shareholders and stakeholders when it comes to investing in a business. While their names are identical, their investment in a firm is substantially different.
Shareholder
For private businesses, single proprietorships, and partnerships,
The owners of corporations and partnerships are liable for their responsibilities.
The company's owners, but they aren't culpable.
obligations owed by the business
Possess the ability to vote and influence public policy.
business administration
It could be a person, a business, or a government agency.
owns a minimum of one stock in the company
A shareholder might be an individual investor
Can sell their stock and buy different stock; they
do not have a long-term need for the company
Stakeholder
suppliers and vendors who rely on the company for a steady supply of revenue
Despite the fact that shareholders are the most common,
Because shareholders are directly influenced by a company's performance, other groups are increasingly being considered stakeholders.
a long-term commitment to the company
more urgent causes
customers who are confident in the company's ability to deliver a specific product or service
owners and shareholders
employees of the company
bondholders who own company-issued debt
Results in better
image of an organization
CORPORATE GOVERNANCE
Concerned with striking a balance between economic and social aims, as well as between individual and societal objectives.
the broadest control mechanism within which a company
related to profit maximization
protection for the provided capital to the firm
Fused into companies Corporate Governance practices
Focus in ethical
business practices
Directly affect an
organization’s performance
CORPORATE SOCIAL RESPONSIBILITY
concerned with handling the company's stakeholders in an ethical or socially responsible manner
based on self governance (external legal and regulatory mechanisms
contrast profit maximization
suggest a set of actions beneficial for external stakeholder
CSR DISCLOSURE
a company's disclosure of information about its environmental effect and relationship with its customers
stakeholders through appropriate means of communication
As reporting encourages, corporate social responsibility may be able to build stakeholder relationships.
Transparency in the workplace fosters more confidence and trust.
Firms strive to minimize the (possible) costs deriving from their connection with their natural and societal environment—referred to as political or societal costs—by sharing information about their social and environmental performance (Fields et al. 2001).
The firm's reputation would improve, increasing its chances of landing contracts.
because it is viewed as socially responsible by the government.
The public is given information about a company's operations through voluntary corporate social disclosure.
connect with others in the neighborhood
Annual General Meeting
a yearly meeting of a company's interested shareholders that is required. The company's directors present a yearly report to shareholders at an AGM, detailing the company's performance and strategy.
The following topics are required to be considered at an AGM in most jurisdictions by law:
Financial statements
Minutes of the previous meeting
Election of the board of directors
Ratification of the director's actions
Coste, Drinlynne S.
BSBA - 3A