Stakeholder Theory: Ethics And Organizational Corporate Governance Theories

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Register to read the introduction… Therefore the responsibility of the agents is not just the shareholder but also other stakeholders. Stakeholders are viewed as any groups or individual that may be affected by the pursuit of the corporations’ goals including suppliers, employees, and the environment (Abdullah et al 2009). Abdullah further states that all stakeholders have an intrinsic value and no interest are above others (Abdullah et al 2009).
C) According to the stewardship theory, the boards of directors of the company are the stewards of the corporation’s assets. As in the agency model there is a principal and an agent. The principle is the steward and will maximize the profit of the company and will not seek self interests. Therefore with the model it is not necessary to control the principal ( board of director) since they are stewards and act to the best interest of the shareholder.

Review of conventional Corporate Governance
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