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CG CH 3
CG CH 3
CORPORATE GOVERNANCE
IS IN
THE
Y Of THE
STAKEHOLDER
Shareholders/ Investors
If the Shareholders are owner of the company they have certain responsibilities & rights to react against directors actions. They usually refuse these responsibilities & rights.
They are interested short term gain than long term performance.
Private Shareholders
Limited Not
liability
Transferability Free
likes
Chapter-3
Employees
Customers
Employees
Staff have a much greater stake in the company than most of the shareholders.
For Example:
On the continent: the company gives employees the scope & space to develop & to live useful, fulfilling & rewarding lives.
German
Fund: Check & control of the pension funds is a fundamental part of Corporate Governance.
THE HP WAY
Responsibilit y
Profit
Ownership
Oppurtu nities
Customers
Complacency
Frequent
contact with all customers is what is needed to keep existing clients from deserting, through asking them if they feel happy with the level of service, quality & price
As far as Corporate Governance is concerned, consumer-orientation goes beyond the realm of using geodemographical information to arouse needs & affect purchasing behavior.
Suppliers/Trading Partners
Purchasing Links
There
is a growing trend in certain industries for products to be purchased within the framework of partnerships.
Buyers
These
A network of partnerships is seen as enabling it to broaden its market access & make it possible for R & D to be shared.
Social Impact
Environmental Impact
The State
The
It
Conclusion
In
a well-run organization, good stakeholder relationships should naturally & equally form.
Chapter -3
END
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