MGT 3659 Chapter Notes - Chapter 12: Business Ethics, Shareholder Rights Plan, Chief Operating Officer
Document Summary
In this final chapter, we looked at stakeholder strategy, corporate governance, business ethics, and strategic leadership, as summarized by the following learning objectives and related takeaway concepts. 12-1 / describe the shared value creation framework and its relationship to competitive advantage. By focusing on financial performance, many companies have defined value creation too narrowly. Companies should instead focus on creating shared value, a concept that includes value creation for both shareholders and society. The shared value creation framework seeks to identify connections between economic and social needs, and then leverage them into competitive advantage. 12-2 / explain the role of corporate governance. Corporate governance involves mechanisms used to direct and control an enterprise to ensure that it pursues its strategic goals successfully and legally. Corporate governance attempts to address the principal-agent problem, which describes any situation in which an agent performs activities on behalf of a principal.
