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[CORPORATE GOVERNANCE AND SOCIAL RESPONSIBILITY] - Coggle Diagram
[CORPORATE GOVERNANCE AND SOCIAL RESPONSIBILITY]
CORPORATE GOVERNANCE
protection for the provided capital to the firm
related to profit maximization
the broadest control mechanism within which a company
CORPORATE SOCIAL RESPONSIBILIITY
suggest a set of actions beneficial for external stakeholder
based on self-governance (external legal and regulatory mechanisms
contrast profit maximization
Directly affect an organization's performance
Focused into companies Corporate Governance practices
Focus in ethical business practices
Results in better image of an organization
Corporate Governance is concerned with balancing economic and social goals and between individual and communal goals.
The corporate governance framework is there to encourage the efficient use of resources and equally to require accountability for the stewardship of those resources.
Corporate social responsibility is concerned with treating the firm's stakeholders ethically or in a socially responsible manner.
Stakeholders exist both within a firm and outside.
SHAREHOLDERS
owners of the company, but they are not liable for the company debts
for private companies, sole proprietorships, and partnerships, the owners are responsible for their obligations
have the right to exercise vote and to affect the management of a company
a shareholder might be an individual investor
can be individual, company, or institution that owns at least one share of the company
can sell their stock and buy different stock; they do not have a long-term need for the company
STAKEHOLDERS
customers who may rely on the company to provide a particular good or service
suppliers and vendors who may depend on the company to provide a consistent revenue stream
bondholders who own company-issued debt
although shareholders may be the largest type of stakeholders.
employees of the company
bound to the company for the long term and reasons of greater need
owners and shareholders