CHECK THESE SAMPLES OF The Effect Stakeholder and Shareholder Theories have on Director's Duties
After a review of the literature and data, it is determined that both theories of corporate governance have their strengths and weaknesses and that a convergence of the two models will resolve the gaps.... Two theories of corporate governance have dominated this debate: the Anglo-American model which emphasizes shareholder primacy or the European model which emphasizes stakeholder primacy.... Even so, these arguments are countered by arguments that express concern over the possibility that shareholder primacy would have a negative impact on the corporation or organization's wider class of stakeholders; employees, creditors, the community and consumers....
54 Pages
(13500 words)
Dissertation
Shell Company believes that oil and gas will be an integral part of global energy needs for economic development in decades to come and therefore has a role in ensuring that they extract and deliver their products profitably and in environmentally and socially responsible Objective of study Overall research objective The research objective is to find out the effect of good quality corporate governance and its impact in organization (Shell Company) stakeholders.... Use of quality corporate governance principles by the Shell Company management was studied and the effects of applying quality governance principles studied to determine whether they have any effect on its shareholders....
27 Pages
(6750 words)
Essay
The paper "The Role of CSR in Organizational Performance" critically analyzes the literature relative to stakeholder theory and its emergence as a core driver of corporate social responsibility, and thus, creates tension between stakeholder and shareholder theories of corporate governance.... Cumulatively, the development of CSR has come to mean that organizations have an implicit duty to advance social interests and not merely the organization's interest and that which is legally required (McWilliams, and Siegel, 2001, p....
61 Pages
(15250 words)
Dissertation
This is symptomatic of the ambiguous approach taken by the Companies Act 2006 to stakeholder and shareholder primacy.... stakeholder and legitimacy theories advance the argument that companies are required to demonstrate that they are legitimate operations and this legitimacy must be demonstrated not only to shareholder but to a wider class of stakeholders.... It is therefore reasonable to conclude that the Companies Act 2006 has shifted momentum in favour of stakeholder theory to the principle of shareholder primacy....
11 Pages
(2750 words)
Essay
This paper 'director's duties towards Shareholders and Stakeholders" focuses on the fact that profit maximization has been traditionally accepted as the singular and most significant objective of an enterprise.... Director's fiduciary duties: The Shareholder's theory advocates that value maximization should be the governing corporate objective.... According to this school of thought, directors should have multi fiduciary duties towards all the stakeholders....
7 Pages
(1750 words)
Essay
"Many managers have considerable discretion to substitute their own interest for that of the stockholders.... In this respect, the finance manager who is in pursuit of shareholder wealth maximization is in fact only concerned with the things that can have an effect or impact on the company's price or value of stock and therefore, other stakeholders can influence company value.... The interests of the stakeholders of any company can deviate sharply from one another and managers pursuing the path to keep all the stakeholders happy, who have no sense of compromise, can do more damage than those managers who put the shareholders first in their doctrine and objectives....
7 Pages
(1750 words)
Research Paper
However, Section 172 makes no reference to this objective consideration in view of the significant role of common law rules in the interpretation and application of the codified duties (s.... 72 remains subjective because what mainly constitutes the success of the company depends on the director's good faith judgment which may not be objective.... Thus, in doing so, he is obliged to have specific regard among other matters, to the interests of company's employees, the....
5 Pages
(1250 words)
Essay
Even though enshrined with several provisions and regulations, one aspect of the Company Law Act 2006 that has generated a lot of public, academic and professional debate and discourse is S 172 CA 2006, which touches on the duties of directors.... The UK company law has been on such legislation that have regulated the way and In 1998, there were several calls by various agencies and stakeholders for the UK company law to be reviewed as it was considered to be overly based on common law (Lowry and Dignam, 2006)....
9 Pages
(2250 words)
Assignment