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Business Ethics and corporate governance

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CHAPTER 6 CORPORATE GOVERNANCE AND OTHER STAKEHOLDERS OBJECTIVES If long-term shareholder value is the chief purpose and objective of a corporate entity, it is not the be-all and end-all of its existence. It is now ubiquitously agreed that there are other claimants as well that crave for its attention and equitable distribution of its profits. Employees, customers, creditors, institutional investors, government and the community at large are the other stakeholders that vie with the stockholders for a pie of its time and resources. CHAPTER OUTLINE        Introduction Corporate Governance Corporate Governance Corporate Governance Investors Corporate Governance Corporate Governance Corporate Governance and Employees and Customers and Institutional and and and Creditors the Community the Government Introduction  It is fallacious to argue anymore that the immediate concern of a Company is to be exclusively directed towards the shareholders, while other stakeholders are only of a peripheral importance to it. (1) CORPORATE GOVERNANCED EMLPOYEES  Employees are also one of the stakeholders of the organisation; by increasing their participation in the organisation, one could ensure corporate governance. Wealth Creation Requires Capital and Labour  Today, the growing recognition that human capital is a source of competitive advantage has led to the understanding that labour is more important than capital, if not, is at least as important as ...
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