COM 445 Chapter 1: STOCKHOLDERS AND STAKEHOLDERS- A NEW PERSPECTIVE ON CORPORATE GOVERNANCE

• School: University of Victoria
• Department: Commerce
• Course: COM 445
• Professor: Sorin

Document Summary

Stockholders and stakeholders: a new perspective on corporate governance. To understand the tasks of the board of directors by using the concept of stakeholders. Understand the implications of the shift from stockholder to stakeholder. * the purpose of the corporation was to serve society (function of the executive was to instill the sense of moral purpose in the corporation"s employees. Stakeholder notion : corporation"s responsible groups who have a stake in the actions of the corp. * csr debate is relevant to understanding the good currency of the stakeholder concept. Three levels of the implications of the stakeholder concept. > those groups without whose support the organization would cease to exist: management theory. First problem: actual definition of stakeholder (original definition is too general and too exclusive) ex) shareowners, employees, customers, suppliers, lenders, society. Wide sense of stakeholder: any identifiable group or individual who can affect/ affected by the achievement of an organization"s objectives.