BU481 Chapter Notes - Chapter 7: Corporate Social Responsibility, Critical Role, The Roots
Document Summary
We need to determine how to reconcile the various stakeholder interests. There is no simple formula that determines the balance of stakeholder interests. Practical matters exist such as the degree to which a stakeholder holds a significant position of power vis- -vis the firm. Covers all the mechanisms that govern the managers" behavior and delineates their discretionary latitude. The need for such mechanisms stems from the separation of ownership of the firm by shareholders and control of the firm by management. One of the primary criticisms is that the board tends to be dominated by internal management or friends of management, rather than individuals who operate at arms length. Board meeting procedures should focus on debating new decisions, strategies and policies not just on reviewing past performance: 3. Directors need better access to information: 4. Directors should be required to devote a substantial portion of their professional time to the corporation: 5.
