QUESTION : Shareholders’ interest and stakeholders’ interest are always being a matter of discussion in business houses. In your opinion, how do shareholder’s value theory and stakeholder theory of the firm differ? Answer: The discourse surrounding the interests of shareholders versus those of stakeholders represents a significant aspect of corporate governance and business ethics. The … Read more
Corporate Social Responsibility (CSR) denotes a company’s dedication to conducting its operations in a manner that is economically, socially, and environmentally sustainable. This concept transcends mere profit generation, encompassing ethical business practices, engagement with stakeholders, and contributions to the welfare of society. CSR mandates that businesses take into account the repercussions of their actions on … Read more
Following are the comparisons and contrasts between Shareholder Value Theory and Stakeholder Theory, along with an analysis of which one is superior and why: Shareholder Value Theory Definition: This theory, which gained prominence through the work of Milton Friedman, posits that a business’s foremost obligation is to enhance shareholder wealth while complying with legal and … Read more
Corporate Social Responsibility (CSR) plays a vital role in the business landscape by encouraging sustainable practices, fostering trust, and enhancing relationships with stakeholders. It enables organizations to bolster their reputation, attract customers, investors, and talent, while also mitigating potential risks. Furthermore, CSR stimulates innovation, boosts employee engagement, and contributes to long-term financial success, all while … Read more
Corporate governance is about how companies are run and managed. It provides rules and processes to ensure companies act responsibly, fairly, and transparently towards everyone involved, including shareholders, employees, customers, and the community. Good governance builds trust and ensures businesses make ethical and sustainable decisions. What is Corporate Governance? Corporate governance creates a structure for … Read more