Agency Theory of Corporate Governance The agency theory explains the relationship between the owners of a company (shareholders) and the people who manage it (managers or executives). In a company, shareholders invest their money and expect the managers to run the business well so that they can earn profits. However, this creates a situation where … Read more
Corporate Governance is a system that helps run a company in a fair, responsible, and transparent way. It ensures the company works for the benefit of everyone involved—shareholders, employees, customers, suppliers, and the community. It focuses on balancing the company’s goals with ethical practices and the long-term interests of all stakeholders. Scope of Corporate Governance … Read more
Agency Theory This theory focuses on the relationship between company owners (shareholders) and managers. It assumes that managers may not always act in the best interest of owners, so strict monitoring and incentives are used to align their goals. Transaction Cost Economics This theory looks at the costs of running a business, especially when dealing … Read more
Good corporate governance is important to ensure businesses are run fairly, transparently, and responsibly. However, in Nepal, there are several challenges that make it difficult to maintain a strong corporate governance system. Challenges for Good Corporate Governance system in context of Nepal The challenges for Good Corporate Governance system in context of Nepal includes: 1. … Read more
Corporate governance is about how companies are managed and controlled. It ensures that companies are run in a way that is fair, transparent, and accountable to everyone involved, including shareholders, employees, customers, and the community. Several theories explain how corporate governance works: 1. Agency Theory This theory explains the relationship between owners (shareholders) and managers. … Read more
Stakeholders are people or groups who are connected to a business and can influence or be affected by its actions. They are essential for the success of any business. Stakeholders can be divided into three types: internal stakeholders, external stakeholders, and strategic stakeholders. Internal stakeholders are people who work within the business, like employees, managers, … Read more
Stakeholder Analysis Stakeholder analysis is the process of identifying and understanding the people or groups who are affected by or can influence a business, project, or decision. It helps organizations know their needs, assess their influence, and manage relationships effectively. Steps in Stakeholder Analysis Managing Key Stakeholders’ Issues Managing stakeholders is essential to ensure smooth … Read more
Major stakeholders of a Business and How Business firms responsible for them Stakeholders are the people or groups who are connected to a business and are affected by its actions. These stakeholders can be inside the business (internal) or outside of it (external). Here’s a simple explanation of the major stakeholders and how businesses are … Read more
The Relationship Between Business and Stakeholders A business and its stakeholders depend on each other to succeed. Stakeholders rely on the business for products, services, jobs, or other benefits. At the same time, businesses need stakeholders for support, resources, and growth. If this relationship is positive and balanced, both the business and stakeholders benefit. How … Read more
What is Stakeholder Management? Stakeholder management is the process of understanding and working with the people or groups who can influence or are affected by a project. Stakeholders can include employees, customers, suppliers, government agencies, local communities, and others. The goal of stakeholder management is to keep these people informed, address their concerns, and gain … Read more