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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 …show more content…
(n.d.). Corporate Governance Definition from Financial Times Lexicon. Retrieved April 3, 2014, from http://lexicon.ft.com/Term?term=corporate-governance
Cragg, W., & Matten, D. (2011). Ethics, Corporations, and Governance. Journal of Business Ethics, 102(S1), 1-4.
Guerrera, F. (2009, March 13). Welch denounces corporate obsessions. Financial Times. Retrieved April 4, 2014, from http://www.ft.com/intl/cms/s/0/3ca8ec2e-0f70-11de-ba10-0000779fd2ac.html
HTAY, S. N., SALMAN, S. A., & MEERA, A. K. (2013). Let's Move to "Universal Corporate Governance Theory".. Journal of Internet Banking & Commerce, 18(2), 1-11.
K, . N., ER, w., DAVID, K., PAUL, M., WALTER, O., & EVANS, A. (2012). Corporate governance theories and their application to boards of directors: A critical literature review . Prime Journal of Business Administration and Management (BAM), 2(12)(2251-1261), 782-787.
OECD Glossary of Statistical Terms - Corporate governance Definition. (n.d.). OECD Glossary of Statistical Terms - Corporate governance Definition. Retrieved April 3, 2014, from
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 …show more content…
(n.d.). Corporate Governance Definition from Financial Times Lexicon. Retrieved April 3, 2014, from http://lexicon.ft.com/Term?term=corporate-governance
Cragg, W., & Matten, D. (2011). Ethics, Corporations, and Governance. Journal of Business Ethics, 102(S1), 1-4.
Guerrera, F. (2009, March 13). Welch denounces corporate obsessions. Financial Times. Retrieved April 4, 2014, from http://www.ft.com/intl/cms/s/0/3ca8ec2e-0f70-11de-ba10-0000779fd2ac.html
HTAY, S. N., SALMAN, S. A., & MEERA, A. K. (2013). Let's Move to "Universal Corporate Governance Theory".. Journal of Internet Banking & Commerce, 18(2), 1-11.
K, . N., ER, w., DAVID, K., PAUL, M., WALTER, O., & EVANS, A. (2012). Corporate governance theories and their application to boards of directors: A critical literature review . Prime Journal of Business Administration and Management (BAM), 2(12)(2251-1261), 782-787.
OECD Glossary of Statistical Terms - Corporate governance Definition. (n.d.). OECD Glossary of Statistical Terms - Corporate governance Definition. Retrieved April 3, 2014, from